How Google and Facebook Play Politics
Record Lobbying by Internet Giants
Google and Facebook hit record levels of spending on lobbying efforts, as the Internet giants ramp up political influence in light of increasingly intense regulatory scrutiny.
Google’s Surge in Political Spending
Google spent a record-high $5.03 million on lobbying in the first quarter of 2012, tripling its spending from the same period a year ago. The company topped traditional big spenders in tech like Verizon.
Facebook’s Rapid Rise in Lobbying Expenditure
Meanwhile, Palo Alto, Calif.-based Facebook spent $650,000 on lobbying in the first quarter of 2012, up from $230,000 during the same period last year. In comparison, Facebook spent just over $1 million last year in total, marking a rapid increase in political spending as the company gears up to go public next month.
New Tech Powerhouses Seek Washington Influence
The tech giants, both relatively new compared to peers like Microsoft, are building up influence as Congress ramps up key legislation that will influence the roadmaps of both companies for years to come.
Google’s Broad Policy Focus
Google’s lobbying efforts were especially broad, with the search company’s strategy honing in on SOPA, patent reform, data privacy, online ad regulation, immigration and the Startup Visa act and science/technology education, among others. The Mountain View, Calif.-based search giant helped lead the effort against SOPA and PIPA, which sought to attack copyright infringement by cutting off Internet access via service providers.
Facebook Targets Global and Domestic Tech Policies
Facebook’s own spending focused on global regulation, foreign Internet access, Internet privacy and especially “Do Not Track” legislation, patent reform and online safety and advertising, among others.
Heightened Regulatory Challenges Ahead
Both Google and Facebook face a myriad of regulatory and legal challenges that will heighten their urgency to build political capital among lawmakers.
Google Faces Probes and Bolsters D.C. Presence
Google has been slapped with many antitrust and privacy probes by agencies like the U.S. Department of Justice over various aspects of its business, and hired former congresswoman Susan Molinari to head its D.C. office. With an on-the-ground, experienced presence, the search company likely aims to navigate its way through many of its regulatory issues as it angles to avoid massive fines and costly, sprawling investigations.
Facebook Eyes Patent Reform Amid Legal Troubles
Facebook’s interest in patent reform will likely continue as well, since the company faces a lawsuit filed by Yahoo, alleging the social network violated its IP. The network’s IPO is scheduled for May, and will likely be one of the highest valued offerings in history. With such a high profile, Facebook will likely fall under more intense scrutiny, especially as its privacy policies continue to draw criticism from consumers and lawmakers alike.
Corporate Spending Equals Political Clout
Spending on lobbying is often directly proportional to influence in the U.S. political system, and companies like Google and Facebook are consolidating their efforts to become players on Capitol Hill.
Tech’s Growing Voice in Washington
The political presence of newer tech companies is relatively nascent in comparison to more established players like Verizon and AT&T, who have their roots in the telecom industry and have consolidated powerful lobbying blocks in D.C. But as technology continues to infiltrate daily life, concerns like privacy, data protection and Internet freedom will fall under the radar of Congress and will likely draw in more regulation as their impact on citizens is felt.
Regulation Could Impact Business Models
Companies like Google and Facebook — which both need a free and open Internet at their core to operate — will likely find their bottom lines and future offerings affected by regulatory policies. Both companies have ramped up hiring influential, experienced lobbyists as well as beefed up their political action committees to exert their influence in the Beltway.
Money Talks in U.S. Politics
Voters get their voices heard in elections, but companies often talk politics in dollars — and lawmakers will be sure to listen up as these two wealthy, powerful companies become more fluent in the language of Washington.