By Ryan Tracy
Big Tech is hard to miss these days in Washington. So is its
money.
Lobbying expenditures by Facebook Inc., Amazon.com Inc. and
Apple Inc. are on pace to hit record highs this year. Facebook
increased spending by nearly 25%, to $12.3 million, through the
first nine months of the year over the same period in 2018,
according to disclosures of lobbyists' compensation filed with the
federal government.
Amazon notched a 16% jump in lobbying outlays, to $12.4 million,
making it the top spender so far in 2019 among all companies,
according to quarterly reports released last week.
Apple boosted spending by 8% so far this year, and Microsoft
Corp. by 9%.
Among individual U.S. companies, Facebook was ranked No. 2 in
lobbying spending through Sept. 30, according to the Center for
Responsive Politics, followed by Northrop Grumman Corp. at $11
million.
The tech lobbying uptick comes amid heightened scrutiny of tech
companies in Washington. Facebook is facing antitrust
investigations from the Federal Trade Commission, the Justice
Department and state attorneys general. Amazon is a target of a
nascent Federal Trade Commission probe into its market power.
The House Judiciary Committee is examining Apple, Facebook and
Amazon as well as search giant Google.
The firms have said they welcome the scrutiny and are working
with investigators.
Google also faces antitrust probes by the Justice Department and
states. Its parent, Alphabet Inc., bucked the trend in lobbying
spending, posting a 41% decline amid a shake-up of its government
affairs operation.
Google still spent $9.8 million on lobbying through Sept. 30,
and like other big tech companies, it is taking steps to present a
positive message to Washington.
In subway stations and at Reagan National Airport, Google has
papered turnstiles and walls touting its privacy controls. It also
opened pop-up kiosks where consumers could get personalized
guidance to set their privacy settings to secure their data.
Amazon took over a busy pedestrian square near the National Mall
this month to showcase the mom-and-pop sellers on its marketplace,
a not-so-subtle response to those who say the e-commerce titan is
suffocating small businesses.
Facebook Chief Executive Mark Zuckerberg is suddenly a regular
presence, making three visits to Washington in the past five weeks
including a policy speech at Georgetown University and a stop at
the White House.
"I'm not sure whether Mr. Zuckerberg has bought an apartment
here yet or not, but he is certainly spending much, much more time
and not just him, " said Rep. Bill Huizenga (R., Mich.). "They were
behind the curve in getting out talking to policy makers."
A Google spokeswoman said the privacy kiosks and ads were
designed to help consumers and tied to National Cybersecurity
Awareness Month. Nicholas Denisson, Amazon's vice president of
small business, said the small-business event was a first, but that
company has long recognized small sellers in other ways.
Facebook and Apple declined to comment.
Some consumer advocates view tech firms' spending as a means of
gaining allies ahead of what could be bruising months to come.
"When you don't have a home in terms of the political parties in
Washington, D.C., you have to do your best to buy one," said Mike
Tanglis, research director at Public Citizen, which supports
breaking up large tech firms.
One driver of the spending by Facebook and Amazon: the firms'
expanding ambitions.
Before this year, Facebook didn't often deal with financial
issues on Capitol Hill. Then in June it announced plans for a
global cryptocurrency, drawing a barrage of criticism. It has since
has hired seven new outside lobbying firms to work on financial
issues, including two former aides to the GOP chairman of the
Senate Banking Committee.
Amazon wants more government business, and on Friday lost a
Pentagon cloud-computing deal worth as much as $10 billion to
Microsoft. Amazon has brought on seven additional outside lobbying
shops since the middle of 2018, including former members of
Congress and congressional aides who work to influence federal
spending.
Apple still spends less than other tech giants, but is also
facing new threats in Washington. It is a target of the House
antitrust probe, and Chief Executive Tim Cook has forged a
relationship with President Trump in an effort to keep tariffs off
the iPhones and other products it imports from China.
Apple spent $5.5 million through Sept. 30, and Microsoft Corp.
spent $7.8 million.
The decline in Google's lobbying spending follows recent
leadership changes, including firing a number of its U.S. lobbying
firms. Last month, it brought on Mark Isakowitz, former chief of
staff to Sen. Rob Portman (R., Ohio), to captain its Washington,
D.C., office.
Google touted its own small-business chops at a June event in
the Capitol hosted by the U.S. Chamber of Commerce, which counts
Google as a paying member.
Reporters, congressional staffers, and others found on their
seats a glossy flier explaining how Google's YouTube helps U.S.
small businesses find customers abroad. Chief Executive Sundar
Pichai spoke about digital trade, then yielded the floor to sellers
of bedding and children's bicycles.
Amazon has brought sellers to Washington to speak to their local
member of Congress about their success, according to congressional
aides. An Amazon spokeswoman said these meetings began before the
antitrust probes.
And on a sunny afternoon in Washington's Wharf neighborhood near
the National Mall earlier this month, Amazon featured about 20
purveyors of snacks, candles, headphones and more who handed out
samples and business cards to passersby. Behind an "Amazon Small
Business Spotlight" sign, they took turns sitting in a makeshift TV
studio for interviews broadcast on Amazon.com.
For its part, Facebook sponsored a September event hosted by
publisher the Atlantic, putting its name on a lounge area where
attendees were invited to work and take meetings.
The sponsorship gave Nick Clegg, the former U.K. deputy prime
minister leading Facebook's policy and communications work, a
platform to preach against Big Tech breakups.
"Pulling apart these tech companies isn't going to do anything
to deal with some of the underlying challenges we all have to rise
together to meet," Mr. Clegg said.
Mr. Zuckerberg's recent schedule has included face time with
President Trump, lawmakers in both parties and television
hosts.
His pushback against calls for Facebook to take down inaccurate
political ads won him praise from critics including House Minority
Leader Kevin McCarthy (R., Calif.), who has accused social media
firms of censoring conservatives.
Before his testimony at the House Financial Services Committee
last week, Mr. Zuckerberg visited Rep. Emanuel Cleaver (D., Mo.),
one of the panel's senior members. The scheduled 30-minute meeting
ran more than an hour as they discussed the company's efforts to
combat dangerous speech, Mr. Cleaver said.
At the hearing, Mr. Zuckerberg faced hostile questions. But
afterward Mr. Cleaver, recalling the face-to-face meeting, said: "I
feel better about Facebook and better about Mr. Zuckerberg."
Ahead of the testimony, Facebook gave lawmakers a sheet
estimating how many small businesses in their district use the
social-media platform. "Facebook is proudly supporting your
community," it read.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
October 28, 2019 05:44 ET (09:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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