Gary Tan advocates for America Act to restore competition in the digital economy

The U.S. Senate Committee on the Judiciary convened on April 1, 2025, to discuss significant reforms aimed at enhancing competition and innovation within the digital economy, focusing on the proposed America Act. The meeting featured testimonies from various experts, including Professor Van Loop and Gary Tan, CEO of Y Combinator.

The session began with Professor Van Loop emphasizing the need for big tech companies to prioritize customer interests over their own. He highlighted that the America Act would impose legal requirements on digital advertising brokerages to ensure they act in their customers' best interests, similar to the heightened responsibilities seen in professions like medicine and finance. He argued that fair access to information is crucial for competition, noting that current practices by big tech often obstruct access to essential data. The professor pointed out that such access mandates have previously led to lower consumer prices in other countries and could help consumers find better deals on platforms like Amazon or avoid harmful content on social media.

Following this, Gary Tan presented the perspective of startups and smaller tech companies, which he referred to as "little tech." He underscored the challenges faced by these innovators due to the dominance of large tech firms. Tan provided three examples from Y Combinator startups that illustrate the detrimental effects of monopolistic practices. He discussed how one startup was forced to pivot after being denied API access, which is essential for integrating new technologies. Another example involved a messaging platform that aimed to enhance interoperability but was stifled by restrictive practices from larger companies like Apple. Lastly, he criticized the self-preferencing behavior of dominant firms, using Apple's Siri as an example of how monopolistic control can hinder technological advancement and consumer choice.

The meeting concluded with a call to action for lawmakers to support the America Act and similar initiatives to restore competition in the tech industry. Both speakers stressed the importance of taking decisive steps to ensure a fair marketplace that fosters innovation and protects consumer interests. The discussions underscored a pivotal moment in addressing the challenges posed by big tech's market power, echoing historical efforts to combat monopolies in the past.