The Politics of 2020 Are Looking Less Ominous for Tech
(Bloomberg) -- There has been concern for months in Silicon Valley that the eventual Democratic presidential candidate would be someone who wanted to break up large technology companies. Bernie Sanders’s decision Wednesday to end his campaign effectively ends that scenario, leaving a presumptive nominee—former vice president Joe Biden—who is comparatively content with the way Silicon Valley does business.
The turn in the primary race corresponds with an upheaval in political priorities due to the Covid-19 crisis. It’s still uncertain how the aftermath of the pandemic will play out, but the political landscape the industry faces in 2020 has almost certainly been transformed over the last six weeks.
The primary process first took a hostile turn to the tech industry last spring when Senator Elizabeth Warren proposed a plan to force Amazon.com Inc., Alphabet Inc. and Facebook Inc. to spin off parts of their businesses. Sanders, the democratic socialist senator from Vermont, later said he would “absolutely” aim to break up large technology companies if elected. At the same time, multiple investigations into allegations of anticompetitive behavior from large technology companies were accelerating.
For his part, Biden has called it “premature” to call for breaking up companies like Facebook. The former vice president has criticized tech companies and their leaders, particularly Facebook CEO Mark Zuckerberg, telling the New York Times editorial board that he had “never been a big Zuckerberg fan.” In the same interview, Biden suggested revoking Section 230 of the Communications Decency Act, a law protecting tech companies from legal liability for what their users post. The industry has made defending the law one of its top political priorities.
But Biden’s attacks have never provoked the concerns as those from Sanders and Warren. He has deep ties to the tech industry; his former director of communications, Jay Carney, is now Amazon’s top spokesman. Biden has also repeatedly framed his administration as a continuation of the Obama years, and several former Obama officials have set up shop in Silicon Valley.
While the tech industry rank-and-file mostly donated to the industry’s antagonists, its executives seemed most excited about younger moderates Pete Buttigieg and Cory Booker. Biden is a happy consolation prize.
An open question is who Biden surrounds himself with now that he seems to have locked up the nomination. Neither Warren nor Sanders has endorsed him, and may hold out to push Biden to pick staff supporting their priorities.
The anti-tech momentum may also fade because of the coronavirus pandemic. While state and federal antitrust investigations will continue, new antitrust rules will likely take a back seat to more economic rescue legislation. Tech services seem even more vital when large swaths of the population are confined to their houses. And Google, Facebook, Apple Inc., and others have been quick to offer help in various ways.
President Donald Trump has been vocally critical of technology companies, and he’s widely unpopular among tech workers. He has regularly called for crackdowns on social media companies and other perceived enemies in the industry. But his top policy achievement, a major corporate tax cut, helped send tech stock prices soaring. (They have since come back down after coronavirus fears have sunk the entire market.) Trump has also seemed to pick favorites among the tech sector, cozying up to Oracle Corp. and Apple, while repeatedly criticizing Amazon and Facebook.
Silicon Valley voters generally lean Democratic. But it’s even harder than usual to predict what the upcoming election will look like. Even basic questions about the mechanics of voting remain unresolved. But for now, the things the tech industry was worried about at the beginning of this year seem like a distant memory.
©2020 Bloomberg L.P.