July 27 at noon. This is the date and time when the CEOs of what are perhaps the most powerful companies in the world – Apple, Amazon, Facebook and Alphabet – will appear before Congress to discuss fair competition. CEO Tim Cook will represent the Cupertino company in the meeting.
Of the four tech and consumer giants, I believe Apple should fear government scrutiny the least. For comparison:
- Amazon is probably the most competitively aggressive of all FAAMG names, and CEO Jeff Bezos has been playing hard ball with Congress.
- Alphabet’s Google is arguably the most dominant of all companies within its industry, as the company controls nearly 90% of internet search.
- Facebook has been under the government’s microscope for so many reasons that I would rather not bother listing them all.
Still, I think that antitrust could be one of the biggest risks for Apple and its FAAMG peers. The success of these companies has been predicated on their ability to become bigger and better at what they do, crushing entrants and smaller competitors in the process. Should their ability to continue to do so be limited by regulation, the negative impact to their stock value could be material.
Don’t forget to watch the video above.