Targeting antitrust bill in limbo as Congress prepares for recess

“If the legislation had the support that its proponents argue, it would not have been a bill,” said Matt Schruers, president of the Computer and Communications Industry Association, whose members include Amazon.com. Inc.,

AMZN -0.99%

Google’s owner’s letter Inc.,

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Apple Inc.

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And Facebook owns meta platforms Inc.

META 1.88%

The bill has some Republican support, though many conservatives oppose it. That means prospects for the legislation could diminish next year if Republicans take control of the House, Senate or both in November’s midterm elections.

Supporters expressed their belief that the law will cross the finish line.

“We continue to have very strong bipartisan support in both chambers and continue to vote for passage in both chambers,” said Rep. David Cicilline (D., RI), one of the bill’s primary sponsors. “It’s just a matter of getting it on the calendar.”

Mr. Cicilline said he hoped the bill would come to the House and Senate floors by now, but noted that lawmakers will be busier than expected this summer on issues related to semiconductor subsidies, abortion policy and a budget-reconciliation reform package.

The main targets of the law are Amazon, Apple and Google, groups that have spent tens of millions of dollars on advertising and lobbying to support the sinking.

If passed, the law would prohibit giant online platforms such as Amazon’s e-marketplace, Apple’s app store, and Google’s search engine from prioritizing a company’s products and services, such as directing consumers to in-house products over competitors. It presents in a way that harms competition.

To counter lobbying by tech companies, progressive activists have targeted a grass-roots lobbying effort against Mr. Schumer, who controls the Senate calendar, driving billboards near his home and gathering outside political fundraisers.

Sens. Amy Klobuchar (D., Minn.) and Chuck Grassley (R

Mr. Schumer has said he supports the bill, but expressed doubt that he would have the votes to pass it at a press conference last month. But last week, an aide said Mr. Schumer “plans to work with Senator Klobuchar and other supporters to gather the necessary votes and bring it to a vote.”

Paul Gallant, a policy analyst at brokerage Cowen, said the announcement was “a positive sign in the direction of passage” and went further than Mr. Schumer had previously gone to signal that the bill would get time on the Senate floor. Inc.

In order to pass the bill, supporters must overcome concerns between both parties.

Many conservatives, including Sen. Rand Paul (R., Ky.), have opposed regulation of the big tech platforms. “Instead of pursuing stronger antitrust laws, Congress should allow the free market to thrive where consumers, not government, decide how big a company should be,” Mr. Paul wrote in a June op-ed.

On the Democratic side, protests came from the California delegation, where most of the affected companies are located.

Rep. Zoe Lofgren (D.Calif.), who represents parts of Silicon Valley, said in an interview earlier this year: “Targeting specific companies to make them untrustworthy is a departure from our history.” She and other Democrats have proposed expanding the scope of the bill to go beyond the big tech platforms, a proposal the drafters rejected.

Representatives for Amazon, Apple, Google and Facebook declined to comment or did not respond to requests for comment.

Mr. Grassley is “working hard to get more support for the bill” and is optimistic about the level of Republican support, the spokesman said.

Mr. Cicilline and Ms. Klobuchar recently spoke with Sen. Brian Schatz (D.Hawaii), who, along with other Democrats, expressed concern that the bill would hinder tech platforms from policing objectionable content.

Mr. Cicilline said lawmakers are debating a bill that could address the issue without alienating Republicans, who they hope will respond to concerns about the conservative content of technology platforms.

“What you can’t do is have one standard for one type of content and one standard for different content,” Mr. Sicilia said, referring to the technology platforms covered by the bill. “There are ways we can make this more clear.”

In a statement, a spokesman for Mr. Schatz said the senator “has been assured that amendments to the bill will be made to address the concerns. He now plans to vote on the final bill, assuming the changes are incorporated.”

A spokesman for Ms Klobuchar disputed this, saying talks were ongoing but there was “no agreement on new changes”. “We hope to vote on this bipartisan bill when we return in the fall,” Ms. Klobuchar said in a statement from her office.

Antitrust legislation isn’t the only technology bill making its way through Congress. Privacy-focused legislation has also failed to pass either chamber, despite efforts to advance more than previous sessions of Congress.

The Senate Commerce Committee approved a bill in July that would strengthen online privacy protections for children and teenagers, but the bill is narrower than the House Energy and Commerce Committee’s privacy bill, which also passed last month.

Lawmakers are looking to reach a bipartisan deal, but analysts doubt they will be able to do so before the end of the year.

Write Ryan Tracy at ryan.tracy@wsj.com