Apple and Google crush California tech bill

SAN FRANCISCO — A California bill designed to curb the dominance of major tech platforms collapsed this week after an aggressive lobbying campaign led by industry giants including Apple and Google.

The legislation, known as the “Based Act,” sought to prevent large digital platforms from favoring their own services over competitors — a practice critics argue stifles innovation and disadvantages smaller firms.

A rapid defeat driven by lobbying power

The bill, introduced by state Senator Scott Wiener, failed in a key California Senate committee less than six weeks after being unveiled.

Supporters say the measure was overwhelmed by a coordinated lobbying push:

• Tech trade groups flooded lawmakers with opposition messaging
• Advertising campaigns warned of negative impacts on consumers
• Lobbyists mobilized small business voices aligned with industry interests

“It was a tidal wave lobbying effort,” Wiener said, arguing that the scale of opposition left supporters at a clear disadvantage.

What the bill aimed to change

The proposed legislation targeted practices common among dominant platforms, including:

• Prioritizing in-house products in app stores and search results
• Limiting visibility of competing services
• Leveraging ecosystem control to reinforce market power

The bill drew inspiration from European antitrust rules, which have already imposed billions of dollars in penalties on large tech firms.

Unusual alliance behind the proposal

The initiative was backed by a coalition of smaller tech players and advocacy groups, including startup incubator Y Combinator.

Supporters argued the measure would:

• Create a more level playing field for startups
• Increase consumer choice
• Reduce anti-competitive behavior

However, they struggled to counter the messaging and resources of larger rivals.

Big Tech’s coordinated response

Opposition to the bill was unusually unified across the tech sector.

Groups such as the Chamber of Progress — whose members include Apple, Google and Amazon — led efforts to block the proposal.

Their arguments focused on potential downsides, including:

• Reduced product performance
• Security concerns for users
• Slower services and degraded user experience

Industry-backed organizations also helped amplify opposition by supporting testimonies from small business owners and funding advocacy efforts.

A broader battle over regulation

The defeat highlights the continued strength of Big Tech’s political influence, particularly in California — home to many of the companies targeted by such regulations.

Similar efforts have faced resistance before:

• A comparable U.S. federal bill failed in 2022
• Tech companies have long opposed European-style regulation
• Industry spending on lobbying and advocacy exceeds hundreds of millions of dollars

Analysts say companies fear that state-level rules could trigger nationwide or global regulatory changes.

What comes next

Despite the setback, the debate is far from over.

Wiener signaled he may revisit the proposal in another form, while advocates for smaller tech firms continue pushing for stronger antitrust enforcement.

Meanwhile, the outcome reinforces a key reality: efforts to regulate Big Tech in the U.S. remain difficult, especially when industry leaders act in a coordinated and well-funded manner.

The bigger picture

The collapse of the Based Act underscores a growing tension at the heart of the digital economy — between innovation driven by startups and the entrenched power of dominant platforms.

As regulatory pressure builds globally, the battle over how to govern Big Tech is likely to intensify, not fade.