Her series of hearings investigating competition Digital Markets. This one on the role of data and privacy and competition. I now recognize myself for an opening statement. I should state the obvious, im not the chairman of the subcommittee. The chairman will be in a few minutes. Digital technologies have provide americans with remarkable array of services. It is never been easy to share news and information to publish content and to commit it with loved ones. All at a moments notice. As the technological revolutions of the mask of this transmission has opened up about the power across our economy. It is support for congress to study understand of these imbalances are affecting americans when it is causing these asymmetries of power and whether these new and growing inequalities are compatible with our democratic values. The committee ongoing oversight of competition Digital Markets is a key part of this process. Todays hearing was examined the role that data plays in creating and maintaining inequalities of power and how this affects competition. As previous hearings have shown, growing share of Commerce Communications is now controlled by a small number of companies. Because these platforms are in essence large intermediaries, they are perfectly positioned to closely track each transaction and communication that passes through their channels. Intermediaries have long collect information on the Economic Activity that flows through the platforms, the large firms and the digital Digital Economy hae unprecedented ability to track and surveillance users across india. This collection includes information not only across a persons shopping and reading house but also about the time they wake up and go to sleep, the precise location each hour of the day and the content of the most private communications. First, how are Digital Technologies in the constant Data Collection they enable affecting competition . Is there something unique about Digital Markets that enables firms to acquire and maintain market power in novel ways . In Digital Markets max was a Data Collection can provide a company with Significant Competitive advantage. A large and costly growing set of user data allows firms both to improve existing Privacy Services and to expand into new lines of business often with a competitive edge. Frequently the most dominated countries in the Digital Economy are those that have captured the most data from as many sources as possible. In recent your scholars have described as dynamic as leading to winner take all markets with a firstcome get established competitive lead wins the market crushing any potential competition. In other words, competitors in Digital Markets have strong incentive to collect as much information on users as possible as quickly as possible, as part of a longterm strategy to compete in the marketplace and to achieve market dominance. This racist is question of whether it is good to society for unrelenting Data Collection to be the key dimension on which companies are looking to outcompete one another. The fact several major digital platforms make most of the profits by selling targeted advertisements heightens those incentives. Second question i hope will be addressed at todays hearing is how Data Collection increases the number of ways the dominant companies can abuse their market power. Does the collection use data enable new forms of conduct that lawmakers are regularly should recognize as anticompetitive . For example, platforms service in the meters of commerce have critical insight into the rifles Business Models, the dynamic the raise significant competition concerns. With these issues in my i look for to hearing from our esteemed panel of Witnesses Today. I yield back the bouts balancey time and i now recognize for his opening statement, the distinguished Ranking Member former chairman of the committee mr. Sensenbrenner of wisconsin. Thank you, mr. Chairman. Today we continue our oversight in the state competition in the tech sector. To date our primary focus is concerned large online platforms. The specific topics we address today, the roles the data and data privacy plate in competition and the ways in which we can better protect the privacy of consumers online data come largely concern the saints platforms. Data is in many ways the lifeblood of the internet. Numerous issues are swirling around the use of this data. For example, these include allegations that, one, platforms mean very large chelation data can operate as a barrier to market entry by new platforms. Two, platforms holding large databases can leverage that data to compete and further with thirdparty competitors that are dependent upon the platforms. Three, the incumbent platforms have pursued mergers with emerging competitors in order to kill off competition for Data Acquisition and market shares. It is my hope are here can help us determine fact from fiction when it comes to these allegations. As i stress before, antitrust laws do not exist to punish success but to foster it. Congress and antitrust enforcement agencies need to be careful not to overreach to extend or apply antitrust laws in ways that indepth punishing success. Suppressing innovation and ultimately limiting consumer welfare. The supply is not just the issues concerning competition for data but also applies the issues concerning privacy. If were going to address data and consumers data privacy through legislation we must get it right. I do not say this in a vacuum. Governments and the United States and europe have already begun to lay down laws to address these issues. Most prominent example to date is the European Union general Data Protection regulation, or gdpr. Following in its footsteps has been californias recently passed California Consumer privacy act, or ccpa, which is substantially modeled on the gdpr. Testimony offered before the Senate Judiciary committee in march by one of our Witnesses Today constitute a powerful indictment of the gdpr. However, well wellintentionede gdpr is already producing substantial Collateral Damage to consumer welfare, innovation, at the health of the Digital Economy. It is likely that the ccpa will have the same effects. All of these effects are avoidable. It is imperative that we in the United States identified and put in place a better means of protecting consumers privacy online. I hope our Witnesses Today can help us work our way through these important issues. And before yielding back let me ask anonymous consent to insert in the record a number of statements, summation for the record that i have received. One from the Mercatus Center without objection. Second, i joint statement by the national cpa, ctia and u. S. Telecom. Without objection. A letter that is been sent to the chairman and myself from epic. Org. Without objection. A letter for the record from carl szabo, Vice President and general counsel of choice. Without objection. I now yield back the bounce of my time. I think the chairman of the full committee for opening think i nebuchadnezzar myself for opening statement. In june this commit committee d a historic bipartisan investigation into the stiff competition in the digital marketplace. The purpose of this investigation is to document anticompetitive online, with a firms engaging in anticompetitive conduct and to assess whether our antitrust laws and Court Enforcement levels are adequate to address these problems. Since launching investigation with codis is a bipartisan hearings, briefings and roundtables as part of this top to bottom review. We have requested documents, communication and information relevant to the investigation. On monday degree received its First Tranche of responses, tens of thousands of documents and we expect receipt and review additional material as part of his request. We will continue to hold hearings and roundtables and quebec oversight to ensure the goals are met. As i said before this work is essential to the committees like semantic and constitutional responsibly to conduct oversight to ensure they are working. Congress not the courts, agencies or private companies enacted the antitrust laws. Congress must be responsible for determining whether the current laws and enforcement levels are keeping up with a Digital Markets. We have much work ahead of us but im proud of the efforts of my colleagues along with their dedicated staff to continue this bipartisan work together. Todays hearing is an important opportunity to death our understanding of a key component of competition online. The role of data and privacy. Several leading International Competition authorities and antitrust experts have published groundbreaking reports that focus on this issue. As noted eight is a part of competition online. For example, an exhaustive report by the show in competition and Consumer Commission concluded, the breadth and depth of user Data Collected by the incumbent digital platforms provides them with a strong competitive advantage creating barriers to rivals entering and expanding in relevant markets and allowing the incumbent digital platforms to expand into adjacent markets. The united kingdoms expert panel similarly reported large trove of dad went to my with network, tip markets in favor of a single dominant platform killing off competition. Data plays an Important Role in the ability to start to attract Venture Capital to compete in these markets. A panel of experts led by professor morten reported investors often if i would access to data as they explain a new entrance start of data quantitatively and qualitatively speaking relative to a tech giant is at a Significant Competitive disadvantage and investors will be unlikely to invest if they do that data deficit is insurmountable. This is real consequences for our to peruse and starts to get locked out of the market and never get a chance to compete on the merits to offer new and innovative services. There is broad agreement among antitrust experts that data can be abused by platforms for anticompetitive purposes. These tactics have created the innovation kill zone around dominant firms. Whether its facebooks use of to spy, amazons ability to identify and close popular products to be sold or the weaponization of api to block competitors, we know the abuse of data a series ramification for competition. This represents an opportunity to examine the role of privacy and antitrust enforcement and competition online. Theres a growing consensus that privacy is an important dimension of data online. In in a statement cement for the record, market consolidation of dump platforms to harm consumers quote not by escalating prices but rather by diminishing quality by a voting privacy terms. Furthermore as uk Digital Competition Expert Panel reported, the nice use of data harm to privacy is not only an indicator of low quality cost by competition but it needs it can use a firms dominant in the marketer in other words, a market that is vibrant competition, firms have strong incentives to respond to consumer demand by improving the privacy safeguards to the products. Without competition and have no incentive to use privacy. I had the pleasure discussing this with the Harvard School of business was recently about the rise of surveillance capitalism. The point she made that strictly is the pattern of automating Consumer Behavior from more clicks is itself a market externality. Theres no consumer demand for this. Americans dont want other information mind just that they can be shown another advertisement or nudge towards a political candidate. Theres no escape because this alternative. People are stuck with that options or no options at all which is evidenced by the market belly. Companies that want to get beat by Offering Services to product that do not rely on surveillance are disadvantaged which reinforces the market dominance of the dom firms. Its clear the relationship between competition privacy is not either or. They are mutually reinforcing concept that must be at the forefront as we consider proposals to restore the internet to its full promised and i approached today sings with these these concerns of my. Id like to take one look to thank the commissioner of European Commission and chairman sims for the statements of it for todays hearing. The chairman was scheduled to testify but due to an unfortunate change in our schedule is unable to attend. I want to thank him and his team for all of the hard work. Now it is my pleasure to introduce todays witnesses for todays hearing. Our first witness is the honorable rohit chopra, the Democratic Commission at the federal trade commission since 2018. Before joining the ftc commissioner shopper was instrumental in establishing the Consumer FinancialProtection Bureau who worked on agencies that limitation team after the passage of the doddfrank act in 2010 and became the First Student loan on boston. He went on to serve as assistant director the cfpb any significant inroads toward stressing the student loan crisis in the United States. He was now made by trump to serve as a commissioner on family 28th, 2018 and was confirmed unanimously. He received his ba from harvard and his mba from the universe uy pennsylvania our second witness, mr. Tommaso valletti is professor of economics at the cause of money since 2007. He served as chief competition comes from European Commission for three years we focused extensively on competition in Digital Markets. He has served as a professor of economics and management at the university of rome where he still serves as a visiting professor. Hes a Research Fellow at the center of policy research and a fenced in for competition and innovation. He received both masters and phd from the London School of economics in addition to his work as an economist, he received his flute diploma from the musical conservatory. Our third witnesses jason furman third witness is jason furman, a professor of the practice examples of the Harvard Kennedy school. Before that, professor from an d served as chair of the council of economic by string present of him second term from 20092013 he was insistent to the president printable Deputy Director of the National Economic council picky serves as a nonresident senior fellow at the Peterson Institute for interNational Economics as was invited on digital market of uk government. He received his ba, ma and phd from harvard as was his masters in science and the London School of economics. Our final witness on the panel is roslyn layton, a visiting scholar with the American Enterprise institute pitch he served as a visiting researcher at Aalborg University and a Vice President in copenhagen. She worked as a director for Search Agency services at ibm. Published dozens of times and numerous publications and served on president trumps Transition Team in 2016 helping to establish the specialty medications commission. She received her ba from american university, and her phd from welcome. Thank you for persisting in todays hearing. Now if you would please rise i will begin by swearing you in. Please raise your right hand. [witnesses were sworn in] let the record show the witnesses answered in the affirmative. Hankypanky may proceed. Please note each of your written statements will be entered in the record in its entirely. I ask you to summer should test one in five minutes. Thats a timely on your table. When the light switches from green to yellow to one minute to conclude when the light turns red signal your fibers has expired. Thank you, mr. Chairman. Ranking member sensenbrenner and members of the subcommittee. My name is United States and to serve as a federal trade commission are. Oversight from congress is a pillar of sound transparent government, and ive been honored to testify many, many times before members of congress, including before chairman elijah cummings, whose energy and passion will