Apple, Amazon, Facebook and Google to be grilled by Congress

CEOs of America's biggest tech companies have been called before Congress. It's all part of a major antitrust investigation into just how much power these tech giants hold. So what exactly are the questions they're gonna be asked and what does it mean for you? Let's break it down. [MUSIC] On Monday, the 27th of July, the CEOs of Apple, Facebook, Google and Amazon are fronting up to Congress to testify before the House Judiciary, antitrust subcommittee. That's a long one. Tim Cook, Mark Zuckerberg, Sundar Pichai and Jeff Bezos are expected to answer questions about just how much power their companies wield, and what that means for you in terms of what you can buy online. The ads you see and the apps you use, the CEOs are expected to appear via video link. This is a pandemic after all but you can still watch the whole thing online. And you can probably expect some pretty tough questions. The House committee has been looking forward to this one For a while. So what exactly are we going to see? The hearing is part of a larger antitrust investigation into big tech. Now, antitrust laws are essentially US laws designed to preserve competition. They stop economic power being wielded by just a few companies, which in turn means More choices and better prices for you, the consumer. Think of it like this. If there's only one big store in town, then you have to buy everything from that store. The store owner can charge whatever they want and they don't have to give you much choice. Not only that, but actually stifles competition because it stops other stores from getting a foothold in your town. Now you think that in the age of online shopping and social media, you would be Spoiled for choice but the reality is there's still just a few big companies that get the lion's share of the action. [MUSIC] Take Google for example. Not only are they the world's biggest search engine with a 90% share of the market. But they also have a huge say in the ads that you see online, which businesses might be highlighted on Google Maps. And I also have that small video site known as YouTube. Right now, Google isn't just answering questions from Congress. They're also facing an antitrust probe from a coalition of attorneys general from 48 US states as well as DC and Puerto Rico. They're also reportedly facing other action from California. And if that wasn't enough, the Department of Justice is looking into them on a federal level. So yes, you can expect to hear a lot from Google at this hearing. But what else are we expecting the CEOs to answer to Well, you can expect Sundar Pichai to answer a lot of questions about Google's ad practices. The company has already been hit with billions of dollars worth of fines in Europe for skewing search results for shoppers and other quote, abusive ad practices. For Apple, the focus will be on the company's App Store. Now, according to Politico, the Department of Justice is already scrutinizing Apple's so-called Ironclad control of the App Store, especially when it comes to apps that compete with Apple's own products. We can probably expect a lot of tough questions about whether Apple D prioritizes other apps and whether consumers space, less choice and higher prices as a result. Over in Europe, the EU is already investigating Apple around its third party restrictions on Apple Pay, as well as the high fees that it charges on in app purchases. Something that was called out by Spotify. Next is Facebook. Now CEO Mark Zuckerberg is no stranger to appearing in Washington after the 2016 US elections he was home before cross Congress to answer questions about election interference, as well as Facebook's role in the spread of misinformation. Now with this hearing, we can probably expect a few more questions on that topic. But, Facebook is also going to be under scrutiny over digital advertising. Like Google, it owns a huge proportion of the digital ad market. Not only on the Facebook platform itself, but But on other platforms like Instagram, which owns now this is gonna come as no surprise to you but according to Pew Research seven in 10 Americans use Facebook and three quarters of those use Facebook every single day. So that's a lot of power in the hands of one company. And finally, Amazon, the store that Americans have been turning to in droves while we shelter in place Not only does Amazon the company own the Amazon retail store, but it also manufactures its own products, which compete with third party products sold in the store that it owns. Now, Jeff Bezos initially resisted calls to appear before the committee, and then the committee threatened to subpoena him. So in June, he said that he would be showing up. So, what does this whole hearing mean for people like you and me? Well, based on past congressional hearings, we're probably gonna hear a lot of corporate talking points and promises to do better. But don't exactly expect Amazon to rock up and say it's gonna stop selling its own products, or for Google to say it'll give up the golden goose of advertising But it is a sign that regulators are starting to take a more critical view of the role that Silicon Valley plays in what we can do online, what we buy what we say and how we shop and hopefully that means better prices [MUSIC] You and me and more choice. Of course CNET will be following the whole hearing so you can watch live if that's your nerdy thing from 12pm Eastern Time on Monday the 27th of July on cnet.com and cnet's YouTube channels If you don't want to watch the whole blow by blow, then we'll have a wrap up of what it means for you after the fact. All right, I'm Claire Riley for CNET and I kind of live for this politic stuff. Stay safe out there, guys.