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Tech Executives Engage with White House Amid Ongoing Antitrust Actions
In recent months, several prominent technology executives, including Amazon’s Jeff Bezos and Meta’s Mark Zuckerberg, have made notable appearances at the White House, particularly during the president’s inauguration ceremony. These high-profile meetings signal an attempt by tech leaders to foster a more favorable relationship with the current administration.
Despite these outreach efforts, the stance on antitrust regulations led by FTC chairwoman Lina Khan’s successor, Jonathan Ferguson, remains firm. Appointed by former President Donald Trump, Ferguson has taken a strong position against major tech companies, continuing the rigorous enforcement protocols established previously. He has publicly asserted his commitment to tackling what he describes as Big Tech’s censorship practices.
“The Trump-Vance FTC is fighting back on behalf of the American people,” Ferguson stated, referencing US Vice President JD Vance’s involvement in the administration’s consumer protection strategies. Recently, the FTC has focused on Uber, alleging that the ride-hailing company misrepresented the financial benefits of its subscription service.
According to court filings from the FTC, Uber reportedly claimed that users could save approximately $25 monthly by subscribing to their $9.99 service. However, these calculations allegedly failed to consider the subscription costs. Furthermore, the FTC’s lawyers pointed out that the cancellation process for the service was excessively complicated, involving a series of elaborate steps that made it challenging for users to unsubscribe.
In response to these allegations, Uber stated, “Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less.” This assertion attempts to clarify the company’s position on user consent and ease of subscription cancellation.
Additionally, under former President Joe Biden’s administration, the FTC initiated legal proceedings against Amazon regarding its Prime subscription model. This case is set to be heard later in Seattle, further demonstrating the ongoing scrutiny of tech giants and their business practices.
During Trump’s first term, the FTC launched a lawsuit against Uber, citing issues related to the mishandling of personal data and inflated earnings claims made to prospective drivers. Those allegations led to a settlement where Uber agreed to pay $20 million to refund affected drivers, reflecting the heightened regulatory environment surrounding the tech industry.
As the landscape continues to evolve with the changing administration, the implications for Big Tech and consumer rights remain an important focus for lawmakers and regulatory bodies.
Source
arstechnica.com