This report was originally posted to thelosteconomy.com.
Arlington, VA — The American Consumer Institute (ACI) has released a new report, The Perils of Restructuring the Tech Landscape, which highlights the dangers of the growing “techlash” movement. This movement, fueled by calls for stricter regulations on Big Tech, overlooks the immense economic and consumer benefits provided by the technology sector. ACI’s analysis challenges the narrative of critics and emphasizes the risks posed by legislative attempts to restructure the tech landscape without adequate evidence or consideration of consumer welfare.
Read the full report here.
Key Takeaways:
- Tech’s Role During the Pandemic: Technology companies enabled remote work, education, and socialization during COVID-19 lockdowns. Without these innovations, the pandemic’s disruption to the economy and daily life would have been far greater.
- Consumer Benefits: Tech companies provide unmatched benefits, such as free or low-cost services like GPS, video calling, and entertainment. Amazon, for instance, empowers over 500,000 small businesses through its marketplace.
- Economic Contributions: Big Tech drives economic growth, contributing $3 in global economic benefits for every $1 in sales. Five of the largest tech firms alone support 12 million jobs and account for 16% of the U.S. GDP.
- Risks of Antitrust Legislation: Proposals like the American Innovation and Choice Online Act threaten consumer savings and convenience by targeting successful business practices like self-preferencing. Such regulations could reduce consumer choice, stifle innovation, and lead to higher costs.
ACI urges policymakers to prioritize evidence-based legislation that promotes competition and consumer welfare while preserving the economic benefits of innovation. Lawmakers must avoid reactionary policies rooted in political rhetoric and instead focus on the broader impacts of regulation on consumers, businesses, and the economy. For more information on this report and ACI’s ongoing work, visit www.TheAmericanConsumer.org.
For more information or to discuss this issue further, ACI is available to engage with stakeholders and policymakers.
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The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.