Apple And Google Successfully Block California Based Act Following Intensive Lobbying Efforts

(RTTNews) - Apple Inc. (AAPL) and Google have managed to derail a California bill aimed at reducing the power of big tech platforms.

This proposed legislation, dubbed the "Based Act," was put forward by Scott Wiener and had the support of a coalition of smaller tech companies, consumer advocacy groups, and startup incubator Y Combinator.

The bill aimed to stop major platforms from giving their products an unfair advantage over others, particularly in Apple's App Store and Google's search services.

However, the bill fell apart quickly after a well-organized lobbying effort by major industry groups like the California Chamber of Commerce and Chamber of Progress. Lawmakers were bombarded with messages, ads, and direct outreach warning that the bill could actually hurt consumers by making online services less efficient and secure.

Wiener called the response overwhelming, mentioning that the Capitol was "flooded" with lobbyists and misconceptions. The measure ultimately failed on April 20 after losing a crucial vote in a legislative committee that was supposed to focus on privacy, even though it had moved forward with some support earlier.

The legislation was reminiscent of European antitrust regulations enforced by the European Commission, which have already led to hefty fines for major tech companies. Experts pointed out that similar regulations in the U.S. could really shake up existing business models and cut into the revenue of big platforms.

Those against the bill argued it would make popular services like search engines and app stores worse, while supporters claimed those fears were overblown and meant to protect the companies that were already on top.

Smaller firms, including competitors like Yelp and DuckDuckGo, supported the bill in hopes of creating a fairer competitive environment.

The campaign against the Based Act also used tactics seen before to defeat federal legislation like the American Innovation and Choice Online Act in 2022, where big tech companies reportedly spent over $100 million on lobbying and advertising.