Letter to President and Congressional Leadership Opposing S.2992
Dear President Biden, Senate and House Leadership, Judiciary Committee Chairs, and Ranking Members:
The United States Hispanic Business Council and the undersigned organizations, write to share our concerns about S.2992 - The American Innovation and Choice Online Act (AICOA), and the disproportionate impact it will have on the American small business community and the Hispanic community as a whole.
While the politicians who champion this antitrust bill claim that they will help small businesses, a recent study by NERA Economic Consulting shows that they will actually cost the economy up to $319 billion. The Hispanic community and our small businesses rely on the platforms and services offered by tech companies like Google, Microsoft, Meta (Facebook), Amazon and Apple, the very companies which this bill targets. The services these companies offer aren’t just convenient; they enable our businesses to reach millions of consumers while empowering Hispanic economic activity.
This legislation could erode the tools and services small businesses use every day, creating a variety of new obstacles at a time when Hispanic small business owners can least afford it. Primarily, it will hurt the small business community by dismantling the platforms we rely on to grow our enterprises. Amidst record high inflation and rising energy costs, we simply can’t afford the unintended consequences of this poorly written legislation.
It’s important to note that 66% of all new jobs are created by small businesses, not the large corporations and conglomerates. We believe you should do everything you can to protect our American small business community as it is the main driver in our economy. Today, 1 out of every 7 American businesses is run by a Hispanic entrepreneur. And according to a recent Claritas study, 36% of Hispanic businesses make most (or all) of their revenue online, compared to only 17% of non-Hispanic businesses. Also according to Claritas, 37% of Hispanic-owned businesses were home-based compared to roughly 29% for non-Hispanic businesses; meaning that their revenue is derived from online sales. The facts clearly illustrate the Hispanic business community relies on the services offered by these tech companies to leverage growth opportunities and engage in economic activity. As advocates for the 4.8 million Hispanic-owned firms in this country, that collectively contribute over $800 billion to the American economy, we are deeply concerned over the devastating impacts of this legislation.
The bill could eliminate the integration of Google maps and review systems into searches, as well as disrupt the operations of the 6 million businesses using Google for access to email, shared files, analytics and more. Not only will this dwindlel competition, it also scatters information that both business owners and consumers use to function and make informed decisions. This bill could also end Amazon’s two-day deliveries by prohibiting the collection of merchant fees to fund the service. This will result in small businesses having to pay more for deliveries and limit access to items that are critical to their operations; all at a time of historic supply chain disruptions. Finally, the bill could force Meta to sell, or halt, its advertising services. The concerning part of this is that 70% of small businesses use Meta ads. In fact, 40% of small businesses believe Meta is their most effective advertising channel. Although touted as legislation that will help consumers and small businesses alike, this bill will be incredibly detrimental to both.
As for our Hispanic community as a whole, this legislation will have a disproportionate impact by dismantling the tools we use to find and compare businesses and products like search engines, social media, and online retailers. It is well known that Hispanics over-index in using the internet. In fact, according to a Nielsen report, 82% of U.S. Hispanics agree the internet is a great way to gather information on products and services they’re considering purchasing. Critical to this notion, Bloomberg notes that the Hispanic community has a purchasing power nearing $2.6 trillion. Disrupting the tools we use to make a majority of our economic decisions will dampen its impact.
The Hispanic community is far more than just a statistic. We are voters, tax payers, and job creators. For these reasons, we urge this administration and congress to consider the harmful effects of this legislation, specifically those that would impact the Hispanic business community. Over the past few years, our community has been ravished by the pandemic, record high inflation and soaring energy costs. But we have endured. Now it's time for our elected officials and policymakers to meet us halfway by opposing the passage of S.2992 - The American Innovation and Choice Online Act (AICOA) because it will induce great losses for our community.
Respectfully Submitted,
United States Hispanic Business Council
Coalicion Latino Americana de Utah
Florida State Hispanic Chamber of Commerce
Fundación Colombianos en Utah
Hispanic Chamber of E-Commerce
Idaho Hispanic Chamber of Commerce
Irving Hispanic Chamber
Nevada Hispanic Business Group
One Inland Empire
Seattle Latino Metropolitan Chamber of Commerce
Statewide Hispanic Chamber of Commerce of New Jersey
Texas Association of Business
Tucson Metro Chamber
Utah’s American Latino Chamber of Commerce
