California’s Proposal to Regulate Big Tech May Have Implications for Small Businesses

The California Law Revision Commission is currently reviewing state antitrust laws and considering a recommendation to ban “self-preferencing” by digital platforms, a move that could have unintended consequences for small businesses.

The proposal aims to encourage competition and curb the dominance of Big Tech companies like Google and Meta. However, some argue that this could make it harder for small businesses to reach customers online.

Angela Harris, owner of Wellness of Life Internal Restoration Clinic and Wellness of Life Products in Sacramento, expressed concerns about the potential impact on her business. She wrote in an opinion piece for CalMatters, “The law revision commission suggests breaking all that information apart and forcing Google to show other companies’ maps, reviews, and compilations of our business information.”

While the idea of promoting competition in the tech industry is commendable, small businesses rely on platforms like Google and Facebook to connect with customers. The European Union has already implemented similar regulations under the Digital Services Act and Digital Markets Act to level the playing field for businesses.

It is crucial for regulatory agencies to consider the implications of such rules on small businesses. While the goal is to foster innovation and competitiveness, these changes could potentially hinder the effectiveness of tools that businesses rely on to reach their target audience.

As the debate continues, businesses affected by these regulations may need to explore alternative solutions and advocate for changes that support their growth and success in the digital marketplace.