Representatives of the California Hispanic Chambers of Commerce drew attention to the potential unintended consequences of the antitrust bill for the potential negative impacts on Latin small businesses.

This bill is an attempt to establish new parameters for the country's large technology companies and has gained greater political support recently, despite dividing opinion among Democrats for possible unintended impacts, especially in the year in which important electoral disputes will take place. 

The Democrats' initiative includes other significant legislation in both legislatures that would exert greater control over Big Techs. The major bill is the American Innovation and Choice Online Act, which is a technology antitrust law that was supported by California Senators Dianne Feinstein and Alex Padilla, both Democrats, on the Senate Judiciary Committee in January this year. However, they cautioned that some significant changes need to be made in order for the bill to gain support on the Senate floor.

The bill is intended to restrict the monopoly of large technology companies. Among other things, they would be prohibited from promoting acquisitions only of branded products in their app stores, harming their competitors. Three big tech companies are likely to be the major targets: Apple, Alphabet and Meta.

There are several points that in disagreement, and one of them is be a possible challenge for technology companies to control hate speech or disinformation campaigns. There is also a warning about the risk of allowing consumers to download applications outside App Store, as is the case with Apple, which would lead to greater security risks according to the company.

However, another debate is held as a consequence of the impacts that the law may have on the economy of the State of California, where Silicon Valley is located. 

According to Julian Cañete, president and CEO of the “California Hispanic Chambers of Commerce”, “nearly 2 million people are employed by the tech sector, resulting in an economic impact of more than $520 billion annually to California’s economy”.

Cañete also explains that “its critical that members of the California Congressional delegation – the nation’s largest – not lose sight of the fact that any regulation targeting the biggest global tech companies will undoubtedly spill over and impact small, minority- and women-owned businesses”.

During the COVID-19 pandemic, the technology sector was important for the survival of small businesses, whose properties mostly are owned by Latinos, African Americans, women, and Asians. Digital tools are central to these communities, especially for maintaining their businesses.

“For California businesses, workers and consumers, passage of this ‘package’ would suppress wage growth and negatively impact consumers. […] the American Choice and Innovation Online Act, would result in separate rules for online marketplaces than those governing brick and mortar businesses, creating a highly inequitable landscape for the many small businesses […] that already struggling”, according Cañete.

According to Los Angeles Times publication “Feinstein and Padilla also criticized that the bill didn’t go through a full hearing before the committee approved it last month, saying it was a rushed process that could lead to unintended consequences”.

The bill's path is uncertain, and with the midterm elections approaching, it seems unlikely that the bill will reach the floor in the coming weeks.