Policy

Big business is fuming about Biden's tech agenda

The CEO of the U.S. Chamber of Commerce went after the FTC, SEC, CFPB and other agencies that are ready to regulate tech.

An exterior view of the Commerce department building

The Chamber of Commerce, a powerful lobbying group that has long opposed most regulations, is pushing back on government scrutiny of tech.

Photo: Ian Hutchinson/Unsplash

It’s not just the Federal Trade Commission anymore: The U.S. Chamber of Commerce, the largest and most powerful business group in Washington, said it planned to push back on “the threat of government overreach” at the Securities and Exchange Commission, Consumer Financial Protection Bureau, Justice Department and every other pillar of President Joe Biden’s tech agenda.

In the Chamber’s annual “State of American Business” speech on Tuesday, CEO Suzanne Clark, who had already been escalating her rhetoric against the FTC’s newly aggressive agenda, said the group would stop “bureaucrats and elected officials” who she cast as getting in the way of American enterprise.

“We will challenge overreach and defend the rule of law at every turn, in every agency, with every tool at our disposal — in Washington, in statehouses and in the courts,” Clark said, her first time giving the group’s yearly address. “What’s at stake is no less than the future of our free-market economy.”

Under Clark’s predecessor, Tom Donohue, the speech served as an opportunity for the Chamber to flaunt its pro-business policy priorities during the post-holiday lull. Speaking at the group’s marble headquarters within sight of the White House, he regularly called for lower taxes, more trade deals, increased high-skilled immigration and boosted infrastructure investment — and issued more or less explicit threats about how the lobbying behemoth and frequent litigator would apply its resources to stop regulation it didn’t like.

Clark, who became CEO last March, continued the trend and has upped her rhetoric since November, when she threatened lawsuits over what she called the FTC’s “abuse of power.” The commission, under Democratic Chair Lina Khan, has taken up more expansive theories of antitrust, applied more scrutiny to mergers and acquisitions and invoked long-dormant or controversial powers.

The FTC and Chamber have long tussled over their opposing views on regulation and antitrust enforcement. On Tuesday, though, Clark also called out the SEC, which is bringing scrutiny to crypto and large tech companies including Meta, as well as considering more transparency rules for unicorns that haven’t gone public. Clark also had stern words for the CFPB — now led by a long-time tech foe who has questioned Big Tech companies about their data practices and made it easier for tech whistleblowers to reach out. And Clark also warned about the Justice Department, which shares antitrust responsibilities with the FTC. The department’s antitrust division is also headed by a longtime enemy of Google.

In her speech, Clark also derided White House’s July executive order on competition, which targeted not just tech antitrust but also issues such as net neutrality and privacy, as well as increased market concentration in agriculture, airlines and pharmaceuticals.

“We have leaders who think that government needs to step in and impose a heavy hand,” Clark said. “The Biden administration introduced a sweeping executive order based on the false premise that our entire economy is over-concentrated and stagnant.”

Clark argued that big businesses don’t squash smaller ones but actually rely on them, and vice versa. She also dismissed “modern-day trust-busters on Capitol Hill from both parties [who] think all big is bad and necessarily a threat to small.”

The Chamber, which oversees a vast network of state and local business groups, has millions of members, the overwhelming majority of which are smaller businesses. In Washington, however, the group is often associated with the biggest businesses and their priorities, and it has topped the list of lobbying spenders in all but one year since 2001. The group’s board draws heavily on big businesses and large tech companies, including Meta, Microsoft, IBM and AT&T.

Ahead of the speech, Public Citizen, a consumer group that has for decades been among the Chamber’s foremost antagonists and boogeymen, released an analysis finding that known members of the organization “have violated state and federal law at least 15,895 times and racked up penalties totaling over $154 billion since 2000.” The report also suggested the business group clashes with the FTC because the Chamber’s ranks “are filled with corporate wrongdoers.”

In a statement, the Chamber said the “wild allegation is patently false” and argued that its pushback instead started because the FTC’s Khan is “charting a radical departure from the agency’s core mission” and creating uncertainty for American business.

The Chamber’s statement and Clark’s speech echo rhetoric from some Republican lawmakers who have grown increasingly personal in their attacks on White House’s picks for key tech regulation spots, delaying the administration’s ability to start putting its agenda into place.

During her speech, Clark also said the Chamber would soon announce a commission on artificial intelligence, particularly as it applies to the workplace, and called for “a tough stance on cyber threats.”

Entertainment

The (gaming) clones never stopped attacking

Clones keep getting through app review despite App Store rules about copying. It's a sign of the weaknesses in mobile app stores — and the weakness in Big Tech’s after-the-fact moderation approach.

Clones aren't always illegal, but they are widely despised.

Image: Disney

Two of the most fundamental tenets of the mobile gaming market:

  1. Free always wins.
  2. No good gaming idea is safe from copycats.

In combination, these two rules help produce what the industry calls a clone. Most often, clones are low-effort, ripped-off versions of popular games that monetize in not-so-savory fashion while drawing in players with a price tag of zero.

Keep Reading Show less
Nick Statt
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
Sponsored Content

A CCO’s viewpoint on top enterprise priorities in 2022

The 2022 non-predictions guide to what your enterprise is working on starting this week

As Honeywell’s global chief commercial officer, I am privileged to have the vantage point of seeing the demands, challenges and dynamics that customers across the many sectors we cater to are experiencing and sharing.

This past year has brought upon all businesses and enterprises an unparalleled change and challenge. This was the case at Honeywell, for example, a company with a legacy in innovation and technology for over a century. When I joined the company just months before the pandemic hit we were already in the midst of an intense transformation under the leadership of CEO Darius Adamczyk. This transformation spanned our portfolio and business units. We were already actively working on products and solutions in advanced phases of rollouts that the world has shown a need and demand for pre-pandemic. Those included solutions in edge intelligence, remote operations, quantum computing, warehouse automation, building technologies, safety and health monitoring and of course ESG and climate tech which was based on our exceptional success over the previous decade.

Keep Reading Show less
Jeff Kimbell
Jeff Kimbell is Senior Vice President and Chief Commercial Officer at Honeywell. In this role, he has broad responsibilities to drive organic growth by enhancing global sales and marketing capabilities. Jeff has nearly three decades of leadership experience. Prior to joining Honeywell in 2019, Jeff served as a Partner in the Transformation Practice at McKinsey & Company, where he worked with companies facing operational and financial challenges and undergoing “good to great” transformations. Before that, he was an Operating Partner at Silver Lake Partners, a global leader in technology and held a similar position at Cerberus Capital LP. Jeff started his career as a Manufacturing Team Manager and Engineering Project Manager at Procter & Gamble before becoming a strategy consultant at Bain & Company and holding executive roles at Dell EMC and Transamerica Corporation. Jeff earned a B.S. in electrical engineering at Kansas State University and an M.B.A. at Dartmouth College.
Entertainment

Beat Saber, Bored Apes and more: What to do this weekend

Don't know what to do this weekend? We've got you covered.

Images: Ross Belot/Flickr; IGBD; BAYC

This week we’re listening to “Harvest Moon” on repeat; burning some calories playing Beat Saber; and learning all about the artist behind the goofy ape pics that everyone (including Gwyneth Paltrow?) is talking about.

Neil Young: Off Spotify? No problem.

Neil Young removed his music from Spotify this week, but countless recordings are still available on YouTube, including this 1971 video of him performing “Heart of Gold” in front of a live studio audience, complete with some charming impromptu banter. And while you’re there, scroll down and read a few of the top-rated comments. I promise you won’t be disappointed.

'Archive 81': Not based on a book, but on a podcast!

Netflix’s latest hit show is a supernatural mystery horror mini-series, and I have to admit that I was on the fence about it many times, in part because the plot just often didn’t add up. But then the main character, Dan the film buff and archivist, would put on his gloves, get in the zone, and meticulously restore a severely damaged, decades old video tape, and proceed to look for some meaning beyond the images. That ritual, and the sentiment that we produce, consume and collect media for something more than meets the eye, ultimately saved the show, despite some shortcomings.

'Secrets of Sulphur Springs': Season 2 is out now

If you’re looking for a mystery that's a little more family-friendly, give this show about a haunted hotel, time travel, and kids growing up in a world that their parents don’t fully understand a try. Season 2 dropped on Disney+ this month, and it not only includes a lot more time travel mysteries, but even uses the show’s time machine to tackle subjects as serious as reparations.

The artist behind those Bored Apes

Remember how NFTs are supposed to generate royalties with every resale, and thus support artists better than any of their existing revenue streams? Seneca, the artist who was instrumental in creating those iconic apes for the Bored Ape Yacht Club, wasn’t able to share details about her compensation in this Rolling Stone profile, but it sure sounds like she is not getting her fair share.

Beat Saber: Update incoming

Years later, Beat Saber remains my favorite VR game, which is why I was very excited to see a teaser video for cascading blocks, which could be arriving any day now. Time to bust out the Quest for some practice time this weekend!

Correction: Story has been updated to correct the spelling of Gwyneth Paltrow's name. This story was updated Jan. 28, 2022.


Janko Roettgers

Janko Roettgers (@jank0) is a senior reporter at Protocol, reporting on the shifting power dynamics between tech, media, and entertainment, including the impact of new technologies. Previously, Janko was Variety's first-ever technology writer in San Francisco, where he covered big tech and emerging technologies. He has reported for Gigaom, Frankfurter Rundschau, Berliner Zeitung, and ORF, among others. He has written three books on consumer cord-cutting and online music and co-edited an anthology on internet subcultures. He lives with his family in Oakland.

Boost 2

Can Matt Mullenweg save the internet?

He's turning Automattic into a different kind of tech giant. But can he take on the trillion-dollar walled gardens and give the internet back to the people?

Matt Mullenweg, CEO of Automattic and founder of WordPress, poses for Protocol at his home in Houston, Texas.
Photo: Arturo Olmos for Protocol

In the early days of the pandemic, Matt Mullenweg didn't move to a compound in Hawaii, bug out to a bunker in New Zealand or head to Miami and start shilling for crypto. No, in the early days of the pandemic, Mullenweg bought an RV. He drove it all over the country, bouncing between Houston and San Francisco and Jackson Hole with plenty of stops in national parks. In between, he started doing some tinkering.

The tinkering is a part-time gig: Most of Mullenweg’s time is spent as CEO of Automattic, one of the web’s largest platforms. It’s best known as the company that runs WordPress.com, the hosted version of the blogging platform that powers about 43% of the websites on the internet. Since WordPress is open-source software, no company technically owns it, but Automattic provides tools and services and oversees most of the WordPress-powered internet. It’s also the owner of the booming ecommerce platform WooCommerce, Day One, the analytics tool Parse.ly and the podcast app Pocket Casts. Oh, and Tumblr. And Simplenote. And many others. That makes Mullenweg one of the most powerful CEOs in tech, and one of the most important voices in the debate over the future of the internet.

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Workplace

Mental health at work is still taboo. Here's how to make it easier.

Tech leaders, HR experts and organizational psychologists share tips for how to destigmatize mental health at work.

How to de-stigmatize mental health at work, according to experts.

Illustration: Christopher T. Fong/Protocol

When the pandemic started, HR software startup Phenom knew that its employees were going to need mental health support. So it started offering a meditation program, as well as a counselor available for therapy sessions.

To Chief People Officer Brad Goldoor’s surprise, utilization of these benefits was very low, starting at about a 10% take rate and eventually weaning off. His diagnosis: People still aren’t fully comfortable opening up about mental health, and they’re especially not comfortable engaging with their employer on the topic.

Keep Reading Show less
Michelle Ma

Michelle Ma (@himichellema) is a reporter at Protocol, where she writes about management, leadership and workplace issues in tech. Previously, she was a news editor of live journalism and special coverage for The Wall Street Journal. Prior to that, she worked as a staff writer at Wirecutter. She can be reached at mma@protocol.com.

Fintech

Robinhood's regulatory troubles are just the tip of the iceberg

It’s easiest to blame Robinhood’s troubles on regulatory fallout, but its those troubles have obscured the larger issue: The company lacks an enduring competitive edge.

A crypto comeback might go a long way to help Robinhood’s revenue

Image: Olena Panasovska / Alex Muravev / Protocol

It’s been a full year since Robinhood weathered the memestock storm, and the company is now in much worse shape than many of us would have guessed back in January 2021. After announcing its Q4 earnings last night, Robinhood’s stock plunged into the single digits — just below $10 — down from a recent high of $70 in August 2021. That means Robinhood’s valuation dropped more than 84% in less than six months.

Investor confidence won’t be bolstered much by yesterday’s earnings results. Total net revenues dropped to $363 million from $365 million in the preceding quarter. In the quarter before that, Robinhood reported a much better $565 million in net revenue. Net losses were bad but not quite as bad as before: Robinhood reported a $423 million net loss in Q4, an improvement from the $1.3 billion net loss in Q3 2021. One of the most shocking data points: Average revenue per user dropped to $64, down from a recent high of $137 in Q1 2021. At the same time, Robinhood actually reported a decrease in monthly active users, from 18.9 million in Q3 2021 to 17.3 million in Q4 2021.

Keep Reading Show less
Hirsh Chitkara

Hirsh Chitkara ( @HirshChitkara) is a is a reporter at Protocol focused on the intersection of politics, technology and society. Before joining Protocol, he helped write a daily newsletter at Insider that covered all things Big Tech. He's based in New York and can be reached at hchitkara@protocol.com.

Latest Stories
Bulletins