Two watchdog groups have warned that key committees in the House and Senate are filled with ties to Big Tech, and conflicts of interest could undermine a looming antitrust crackdown on Google and Apple.
Last month, the House and Senate Appropriations Committees were torn by antitrust hawks after passing a spending package that included a $45 million cut in the anticipated budget of the Justice Department’s antitrust division – Big Tech critic Amy Klobuchar (D-Minn.) and Sen. Chuck Grassley (R-Iowa). I asked for that to be reversed.
Several members of the powerful committee have received campaign contributions from or personally invested in Big Tech companies. According to the joint report It will be released on Tuesday by Revolving Door Project and Fight for the Future.
Antitrust watchdogs also criticized Senate Majority Leader Chuck Schumer (D-N.Y.), who sets the floor agenda and has two daughters who work for tech companies. The report said Schumer “received more than $780,000 in campaign contributions from this field, more than almost any other member of Congress.”
The chair of the Senate Appropriations Committee, Sen. Patty Murray (D-Wash.), has received more than $1 million from large technology companies and their employees during her career, and her vice chair, Sen. Susan Collins (R-Maine), has received more than $1 million from large technology companies and their employees during her career. ) received more than $44,000 in campaign contributions from technology companies. She owns up to $550,000 in tech stocks alongside her husband since 2019.
“Unfortunately, even as we intervene to reduce antitrust enforcement funding for Big Tech and other giant corporations; [the lawmakers] And its staff members make money from the same companies, collect campaign contributions, and build corporate networks, whose professionalism and even ethics are called into question,” the report states.
On the House side, Appropriations Committee Chairwoman Kay Granger (R-Texas) received more than $42,000 from big tech sources, and top Democrat Rosa DeLauro (D-Conn.) received $8,000. I received more than that.
The report also found that more than 30 “revolving door” staffers with ties to the Appropriations Committee or its members have gone on to take policy jobs at companies or join friendly representation groups, either currently or in the past. It was also determined that he worked as a lobbyist for Big Tech.
“Big tech companies are placing their lobbyists in staff positions on appropriations and other powerful committees, as well as budget-related government positions,” the report said.
In other cases, Congressional staffers took lavish trips to Big Tech-funded conferences and policy summits, where they “drinked and ate” while being exposed to industry stories.
In one instance, Murray’s legislative aide Mariana Sawaghed went on a three-day trip to Silicon Valley, an influential think tank funded by big tech companies, according to disclosures. It was funded by the Information Technology Innovation Foundation.
According to the report, Mr. Sawaghed was staying at Sunnyvale’s swanky Wild Palms Hotel and “joined dozens of Congressional legislative staff and policy makers” to attend a policy summit, including one on artificial intelligence regulation. It also included a discussion of “Google’s perspective” on the possibility of
One lawmaker singled out for criticism is Sen. Brian Schatz (D-Hawaii), whose senior staffers have received Big Tech funding since 2016 to move to luxury locations such as Aspen and Las Vegas. It is said that he traveled “one trip after another.”
Schatz, who serves on the Senate Appropriations and Commerce Subcommittee, has received $150,000 in campaign contributions from Big Tech sources since 2013, according to the report.
Sen. Jeanne Shaheen (D-N.H.), chair of the Commerce Subcommittee, received funds from companies subject to antitrust oversight, including $10,000 from Meta Inc. .
The spending package capped the Justice Department’s antitrust division’s budget at $233 million. This was an increase of $8 million for him compared to the previous year, but still a decrease from the previous year. Previously estimated at $278 million in fiscal year 2024 – By limiting what can be collected from pre-merger filing fees. Antitrust teams have long relied on fees to fund their operations.
This cap was enacted despite the passage of a bipartisan bill in December 2022 called the Merger Application Fee Modernization Act. The bill was intended to increase fees and provide more funding to the Justice Department’s antitrust division.
A spokeswoman for Collins said the senator “does not own, and has never owned, any stock in any individual company.” Her investments, including an IRA, are in mutual funds. ”
Her husband, Tom Daffron, “is not involved in the purchase or sale of any stocks in his diversified portfolio,” adding that “investment decisions are made exclusively by third-party advisors without consultation with him.” ”.
“Senator Collins has no role in the Department of Justice’s budget negotiations, including the Antitrust Division,” the spokesperson added.
A representative for Schumer declined to comment. Representatives for Mr. Murray, Mr. Granger, Mr. DeLauro, Mr. Schatz and Mr. Shaheen did not respond to requests for comment.
After facing pressure from his colleagues and others, Shaheen vowed last month to lift toll restrictions imposed in the 2025 budget. The White House also proposed a fiscal year 2025 budget that would provide a $63 million increase to the Justice Department’s antitrust division. Bloomberg reported.
As the Post reported, Apple is in the midst of a massive charm offensive on Capitol Hill, including record federal lobbying spending and Tim Cook’s highest since President Biden took office in 2021. This included at least 12 visits by the CEO to the White House.
Last month, multiple sources raised concerns about Apple’s close relationship with the Biden administration in light of Congress’ efforts to reduce funding to the Justice Department’s antitrust division.
The Department of Justice recently sued Apple for allegedly using anticompetitive business practices to secure an advantage over the iPhone.
Separately, the Justice Department is in the midst of a landmark lawsuit aimed at breaking up Google’s online search business.
A federal judge is expected to rule later this year on whether Google maintains an illegal monopoly.
