Every day, it seems that there is a new headline about legislation or litigation targeting the very tech companies that we have come to rely upon during the pandemic. Amazon, Apple, Google, Facebook and even smaller tech companies, like Yelp, have all been in the crosshairs of regulators and policymakers alike.
Utah has been no different. The state got dangerously close to passing legislation that would have given the government control over online speech on social media before the governor wisely elected to veto it. And now, attorneys general across multiple states, including Attorney General Sean Reyes of Utah, are threatening yet another wasteful antitrust lawsuit against Google.
These lawsuits tie up tech companies’ time, energy and money defending themselves against litigation, shifting focus from developing and rolling out more innovative products like the digital tools that have helped Utah small businesses get back on their feet.
Tech companies and the digital tools they create have been an integral part of the recovery. Those tools helped small businesses improvise when in-person events and shopping were put on hold. And even after the pandemic, small businesses will continue to rely on these digital tools to bolster their revenue.
But there is more work to be done, which is why it is so important that we have an all-hands-on-deck approach to put Utah back on the right track. That approach should not include attacking tech and trying to bring down our economic engines.
Representing a traditionally conservative state, Utah’s politicians often mount strong crusades against wasteful government spending. These lawsuits against tech irresponsibly funnel millions of taxpayer dollars into trial lawyers’ pockets who are litigating the case.
Even worse, there has not been any funding from the Biden administration or Congress for these cases, so the financial brunt is overwhelmingly being felt by Utah taxpayers.
All the while, deep-pocketed companies, like Epic and Spotify, are already litigating this exact matter. Reyes should know that letting these other cases play out is the fiscally sound approach, not pushing a duplicative and costly state-run lawsuit.
And yet, the most damage won’t be even inflicted on the state’s coffers, but to Utah’s growing reputation as a strong hub for innovation.
In recent years, Utah is one of the fastest-growing tech industry hubs in the nation according to a recent report, bringing in thousands of tech jobs for Utahns. If the state attorney general decides to instead punish such companies with unjustifiable and burdensome litigation, it sends the message that tech is not welcome here, and in doing so, risk jeopardizing Utah’s promising growth in the tech sector.
Those that will suffer the most are the hardworking people of Utah, and the next generation of talent in this state.
Another antitrust lawsuit simply does not make sense. Utah should not be attacking the tech companies that are helping small businesses recover from this devastating pandemic while wasting taxpayer dollars and potentially turning away new opportunities for the burgeoning technology sector to grow.
Reyes should realize the catastrophic impact of another potential lawsuit against tech companies and pledge to stay out of any similarly wasteful litigation.
James Czerniawski | Libertas Institute
James Czerniawski is the tech and innovation policy analyst at Libertas Institute, a non-profit think-tank in Utah. His work has appeared in U.S. News and World Report, Morning Consult, The Salt Lake Tribune and more. Follow him on Twitter @JamesCz19.