Amazon secretly funds new coalition opposing tech regulation


Amazon’s funding of the coalition is the latest example of how technology giants have been discreetly funnelling money into affinity groups that back their agenda amid the largest and most expensive lobbying battle in the industry’s history. — AFP

A group fighting antitrust legislation targeting the biggest US tech companies presents itself as a grassroots advocate for American taxpayers, yet it hasn’t disclosed a significant source of funding from one of the industry’s giants: Amazon.com Inc.

The Competitiveness Coalition, led by Scott Brown, a former Republican senator from Massachusetts, has received more than US$1mil (RM4.44bil) from Amazon, according to three people familiar with the organisation’s funding.

Founded in March as the bipartisan antitrust bill was gaining steam on Capitol Hill, the Competitiveness Coalition has held meetings with Republican lawmakers, run television ad campaigns and blasted out op-eds opposing the measure – all without revealing the backing from the ecommerce giant.

“Take Action Write Your Senator – Oppose the Radical ‘American Innovation and Choice Online Act’,” reads the group’s homepage, referring to a signature proposal in a package of bills intended to curb the dominance of internet giants that could be voted on later this month.

Amazon’s funding of the coalition is the latest example of how technology giants have been discreetly funnelling money into affinity groups that back their agenda amid the largest and most expensive lobbying battle in the industry’s history.

Alphabet Inc’s Google, Meta Platforms Inc’s Facebook, Apple Inc and Amazon have doled out hundreds of millions of dollars as they seek to defeat the measures.

Amazon didn’t respond to requests for comment and Brown, the group’s chair, declined to comment.

The coalition was spawned by the National Taxpayers Union, a conservative advocacy organisation, and counts more than a dozen right-leaning groups as members. NTU, one of the most prominent voices against regulation in Washington, has received money from Amazon and Google for years, according to public disclosures by the companies.

Under federal law, advocacy organisations aren’t required to disclose the names of their donors.

The taxpayer group “incubated the Competitiveness Coalition to oppose antitrust policies that do not work for consumers and taxpayers”, said NTU spokesman Kevin Glass.

‘Astroturfing’

During the fight over the antitrust bills, the Internet giants have leaned heavily on “astroturfing”, orchestrated public relations campaigns that create the illusion of public support.

Over the past year alone, the companies have heaped money into groups claiming to represent Black and Hispanic communities, small businesses and national security officials, seeking to bolster their claims that the legislation would hurt everyday people – not just four of the world’s largest companies.

This week, the Competitiveness Coalition staged a crescendo of actions: It urged Senate Majority Leader Chuck Schumer to dump the bills “in the garbage bin where they belong”, and held its first briefing with Capitol Hill staff, according to an invitation shared with Bloomberg News. The event was billed as an opportunity to “learn about the dangers of the current antitrust legislation and how it could harm America’s global competitiveness”.

The group also urged lawmakers to reject the legislation in a letter Monday to House and Senate leadership. “Passing this measure as our economy teeters on the brink of a recession and while China continues to nip at our heels, is akin to lighting a match next to a gas leak,” the letter read.

Left and right

Amazon hired Mattie Duppler, the National Taxpayers Union’s senior fellow of fiscal policy, in November 2020 to coordinate with conservative third-party groups. Duppler was instrumental in helping to set up the Competitiveness Coalition, pulling from her NTU experience and close relationships with taxpayer groups across Washington, according to two of the people familiar with the process.

Amazon’s public policy shop believed the Competitiveness Coalition could serve as a counterweight to the Chamber of Progress, a left-leaning tech association it also funds led by former Google executive Adam Kovacevich, according to the people. While the Chamber of Progress provides a pro-tech voice on the left, some Amazon public policy officials determined that they needed a similar group on the right. – Bloomberg

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