Facebook and Amazon increased lobbying spending in 2020

Facebook, facing federal and state antitrust lawsuits as well as a series of hearings summoning CEO Mark Zuckerberg in Washington, spent nearly $ 20 million in 2020, up nearly 18% from the previous year. last year.

Amazon, which saw CEO Jeff Bezos testify before Congress for the first time and continued to push to expand his business as a government entrepreneur, spent around $ 18 million last year, up from around 11% compared to 2019 spending.

“We have made it clear that the internet needs updated regulations, which is why we will continue to express our support for the new rules that respond to today’s realities online,” said a spokesperson for Facebook.

“Amazon offers a wide range of products and services to our customers, and we are always looking for ways to innovate on their behalf. Our team in Washington, DC strives to ensure that we stand up for issues that matter to policy makers, our employees and our customers, ”said an Amazon spokesperson.

The Journal analyzed reports filed by US companies with Congress under the Lobbying Disclosure Act. Reports cover the whole year.

Apple Inc.

AAPL 1.61%

disclosed $ 6.7 million in lobbying expenses for 2020, up from a record $ 7.4 million in 2019.

Alphabet Inc. of

GOOG 0.52%

Google also reported a drop in the lobbying budget for the second year in a row, spending $ 7.5 million.

Apple and Google declined to comment on lobbying spending.

Such spending, which must be disclosed under federal law, is just one part of a set of efforts the four tech giants are using to counter their criticisms and build goodwill in Washington at one point. where they are more than ever in the spotlight.

Google and Facebook face multiple antitrust lawsuits, and Amazon and Apple have been the subject of preliminary investigations that could advance further under the Biden administration.

While President Biden hasn’t set a tech agenda or made a choice of key personnel overseeing the industry, Congressional Democrats are pushing him to be more aggressive in tackling Big Tech’s market power. They plan their own legislation and monitor issues such as antitrust, privacy, liability for user-generated content, and disinformation.

The role of social media in the Jan. 6 Capitol Riot gave new urgency to these plans and led to Facebook, Amazon and others halting political donations, reducing one source of influence.

A key part of the business handbook is funding groups that agree with the business agenda.

In a separate disclosure of its political activity, Google said in December that it was a member or substantial contributor to nearly 200 business associations and political advocacy groups, including several working on antitrust issues. Some groups have criticized Google.

When a Colorado-led coalition of attorneys general filed an antitrust lawsuit against Google in mid-December for its dominance in online search, the chairman of the Connected Commerce Council – one of the groups funded by Google – posted a statement denouncing the action. It was emailed to reporters before details of the lawsuit were made public.

The board members are small companies that benefit from the products of technology companies, said its chairman, Jake Ward. He said he used funds from Facebook, Google and Amazon to fund research and staffing, but companies have no say in the group’s positions.

In 2020, Facebook backed a new advocacy group, the American Edge Project, to warn of the dangers of stopping technological innovation.

In December, two of the group’s paid advisers, former Senators Saxby Chambliss (R., Ga.) And Kent Conrad (D., ND), wrote a Washington Times commentary citing a poll conducted on behalf of the group which showed that voters appreciate levels of US technology products and companies.

A representative for American Edge said its more than two dozen members come from diverse backgrounds. They include advocacy groups from other sectors, such as manufacturers of medical devices.

Apple has taken a proactive stance by feeling the heat of the antitrust spotlight. Ahead of a July hearing with CEO Tim Cook and other chief executives last year, the company offered to brief congressional staff on a study showing the economic benefits of its App Store. An Apple spokesperson said the study was developed as a curtain raiser for the company’s Global Developer Conference.

Companies have also hired a Washington experience, according to their employees’ LinkedIn profiles. Under the control of the Federal Trade Commission, Facebook last year hired Barbara Blank, a 12-year FTC veteran and a former senior official in the agency’s competition bureau, which handles antitrust lawsuits.

He also brought in two former staff from the Senate Judiciary Committee, which oversees antitrust and other tech-related matters.

Amazon, the subject of a preliminary FTC investigation, hired a Department of Justice antitrust attorney last year and hired four former FTC officials, including three antitrust attorneys and an economist.

Apple hired a Justice Department attorney and a former FTC antitrust official who also advised FTC Commissioner Rebecca Slaughter, now the agency’s interim president.

Businesses are also buying Washington-focused ads. Facebook bought digital ads from Washington publications in 2020, touting support for “updated internet regulations.”

This month, Big Tech offered the Biden administration its help in the fight against the coronavirus pandemic and highlighted long-shared political priorities.

A senior Amazon executive publicly wrote a letter to Mr. Biden on the day of the inauguration, offering IT and logistical assistance for the deployment of a vaccine against the coronavirus.

Google CEO Sundar Pichai tweeted praise for Mr. Biden’s Day One Executive Actions on the pandemic, climate change and immigration. Apple’s Mr. Cook also praised Mr. Biden’s immigration policy.

And ahead of the inauguration, Facebook representatives spoke with Transition Biden about corporate efforts to tackle misinformation about the coronavirus, and CEO Mark Zuckerberg hosted federal infectious disease expert Anthony Fauci for a conversation. broadcast online.

Among other tech companies, Microsoft Corp.

spent $ 9.4 million on lobbying in 2020, Oracle Corp.

spent around $ 8.1 million, the owner of TikTok ByteDance Inc. spent $ 2.6 million and Twitter Inc.

spent $ 1.5 million.

—John D. McKinnon contributed to this article.

Write to Ryan Tracy at [email protected], Chad Day at [email protected] and Anthony DeBarros at [email protected]