When Google announced in 2019 that it would acquire Fitbit for $2 billion, lawmakers didn’t hide their frustration.
“By attempting this deal at this moment, Google is signaling that it will continue to flex and expand its power despite this immense scrutiny,” Rep. David N. Cicilline (D-R.I.), chairman of the House Judiciary antitrust subcommittee, said in
a statement the same day the deal was announced.
But more than 24 hours after Microsoft announced its plans to purchase Activision for nearly $70 billion, aggressive trustbusters in Congress were uncharacteristically quiet. Core sponsors of antitrust legislation targeting the tech industry, including Cicilline, Sen. Amy Klobuchar (D-Minn.) and Sen. Tom Cotton (R-Ark.) did not immediately comment to The Washington Post on the deal.
The silence underscores how Microsoft has carved out a distinct reputation among policymakers, distancing itself from the political scrutiny embroiling its top competitors in Washington. As Apple, Facebook, Amazon and Google were marshaling their Washington resources to beat back competition legislation up for debate on Capitol Hill this week, Microsoft smoothly announced one of the
largest acquisitions in the history of the tech industry. (Amazon founder Jeff Bezos owns The Washington Post.)
The company had apparently deputized its reputation with lawmakers to assure them about the deal. Rep. Ken Buck (Colo.), the top Republican on the House Judiciary antitrust subcommittee who has supported legislation aimed at major tech companies,
told The Post that he received “encouraging” assurances about how the company would ensure competition in gaming.
[...]
Sen. Elizabeth Warren (D-Mass.), who has called for the breakup of large tech companies, said Wednesday that antitrust officials should scrutinize “any multibillion-dollar merger.”
“I have real concerns about how Microsoft’s proposed acquisition will affect workers given that concentrated corporate power can exacerbate unfair labor practices, including those reported against Activision,” she said in a statement. “A few giant corporations already dominate the gaming industry, and this deal raises questions about a level playing field for entrepreneurs and small publishers to compete.”
Microsoft, like other tech titans, is a major lobbying spender in Washington. But industry officials say the company has been more effective than its peers because of its long-running relationships and has a protracted legacy because of its early policy battles.
“Microsoft’s D.C. office is a generation older than most tech companies,” said Nu Wexler, who previously worked in policy communications for Twitter, Google and Facebook in Washington. “They’ve had time to build relationships on Capitol Hill while people were hiring and setting up PACs.”
At the center of those relationships is Microsoft President Brad Smith, the company’s most visible envoy to Washington. Smith, who joined the company in the 1990s and played a key role in its antitrust battles, has testified on Capitol Hill multiple times, including at least four times in 2021. Cicilline thanked him last year for “his assistance” during the course of lawmakers’ investigation into other large tech companies.
Smith has sought to position his testimony on regulation as bigger than just Microsoft or any single company, warning that policymakers risk moving “too slow” to address these problems.