Tech companies are turning their attention to state houses across the country as a wave of local bills opens a new frontier in the bid to limit Silicon Valley’s power.
Arizona, Maryland, and Virginia are some states where lawmakers take the power of technology companies such as Google and Apple Inc. Alphabet Inc. want to limit on a range of issues, from online privacy and digital advertising to app store fees. Government policy proposals are receiving bipartisan support from lawmakers seeking to dampen the leverage and financial leverage of businesses that have grown during the pandemic.
Google, Apple and others are hiring local lobbyists and digging into the details of proposed legislation, state representatives said. Technology companies are faced with possible regulations that would limit the reach of their platforms, reduce revenues with taxes, or force them to allow additional privacy disclosures.
While federal lawmakers have held hearings and debates on policies to regulate technology companies, debates and votes may take place in states first. If passed, state laws matter because they can become de facto national standards without federal action, such as with the 2018 California Privacy Act, which gave consumers both the right to access personal information that companies collect from them and the right to to request that information. are removed and not sold.
Facebook Inc. initially opposed the California measures, but supported them after they took effect. Companies such as Microsoft Corp. have chosen to respect the new rules across the country.