What Are The Big Tech Antitrust Congressional Hearings and Why Do They Matter?

As a part of an 18-month federal investigation, the Federal Trade Commission and the U.S Department of Justice have been looking into the biggest tech companies as they build a potential antitrust case(s); posing the question: Should the biggest tech platforms be broken up?

In the meantime, and in case you need a refresher (or forgot all the information from that one business law class you took in college), here’s what antitrust means and why it matters.

By protecting the consumer, federal regulatory bodies like the FTC work to enforce antitrust laws to ensure the rules of the competitive marketplace aren’t being broken. Contrary to popular belief, antitrust laws are not established to ‘punish’ big companies for their commercial success. Instead, these laws are meant to protect consumer interests through, what I would call, ‘healthy’ competition.

In a free and open competitive market, competition benefits consumers. By trying to attract customers, businesses will naturally compete to offer lower prices and increase the quality of their goods and services.

Included in this hearing are representatives from the four biggest tech organizations:

While these individuals are not as significant as the CEOs or EVPs making an appearance, this line up communicates clearly that tech organizations are taking this investigation very seriously; sending executives who know their platforms and antitrust law better than anyone.

What’s most interesting to me is the underlying human-centric elements of each brand’s messaging that help each of these brands develop a more friendly, helpful, and kind brand voice that has already been put to use. As highlighted by The Hill, ahead of these hearings, the tech companies referenced previous mentions of their commitment to innovation, supporting people and physical forces (like brick-and-mortar retail), and on the subject of antitrust issues.

During the hearings, anticipate further reinforcement of the efforts outlined above. In fact, it’s best to think of today’s session as a part of the government’s information-gathering process as they hear from spokespeople about their company’s practices. With the August recess just weeks away, regulatory action is (more than likely) weeks, if not months, or even years away. But that doesn’t mean you shouldn’t tune in.

As an advertiser, it’s important to keep a watchful eye on the learnings from these congressional hearings, but even more important to track are the platform updates and advertising capabilities that are sure to change in the very near future.

The tech companies will surely learn from Congress’s inquiries, so expect platforms to further shape advertising offerings to address these antitrust fault lines and, of course, meet ever-changing consumer demands as big tech practices glean a more significant national spotlight, higher operational standards, and thus face intensified regulatory scrutiny.

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