Tenney Urges SBA to Prioritize Small Businesses Instead of Big Tech Giants like Amazon, Facebook, and Google

Washington, DC — Congresswoman Claudia Tenney (NY-22) today sent a letter to Isabella Guzman, Administrator of the Small Business Administration (SBA), urging her to reverse the recent decision to partner the SBA with several Big Tech companies, including Amazon, Google, Meta (formerly Facebook), and others, as part of the SBA’s Small Business Digital Alliance (SBDA). Tenney highlighted the companies’ predatory business practices that harm small businesses and directly oppose the SBA’s mission to “aid, counsel, assist and protect the interests of small business concerns, preserve free and competitive enterprise and to maintain and strengthen the overall economy of our nation.”

On February 23, 2022, Administrator Guzman announced the SBDA’s national members, which included Amazon, Google, Meta, and others. The intended goal of the SBDA is to partner the SBA and Business Forward, Inc. to promote American economic competitiveness and connect entrepreneurs with digital tools.

In her letter, Tenney noted that instead of choosing to work with small businesses at the cutting edge of the technology industry, the SBA has enlisted the help of companies such as Amazon, which compiles data on the sales, costs, and suppliers of small business sellers that use the platform. Amazon has then reportedly undercut those small businesses by selling its own copy-cat products at lower prices, while pushing small business products down the website’s search results.

In part Tenney wrote, “I urge you to use your position to hold these predatory entities accountable instead of granting them cover and legitimacy to further prey upon our nation’s small businesses. Your decision to engage in a partnership with the greatest Big Tech offenders is wholeheartedly misguided, and I implore you to reconsider the entities with whom you shall enter into agreement and, true to your agency’s mission, make a concerted effort to ensure more successful small businesses in the technology sector are incorporated as partners into this initiative.”

The full text of the letter is available here or below.

Dear Administrator Guzman,

In February, under your leadership the Small Business Administration (SBA) announced the creation of the Small Business Digital Alliance between the SBA and numerous Big Tech companies. As you know, the stated mission of the SBA is to “aid, counsel, assist and protect the interests of small business concerns, preserve free and competitive enterprise and to maintain and strengthen the overall economy of our nation.” However, partnering almost exclusively with some of the world’s largest Big Tech monopolists, including some technology firms that have quashed competition and harmed small businesses, acts in direct opposition to this goal. While I commend your effort to make technological services more accessible to small businesses, I ask that you reexamine the list of partners to ensure that highly successful small businesses in the technology sector are represented and that larger firms with troubling track records are not.

As a member of the House Committee on Small Business, I have worked tirelessly to bolster our domestic economy and support our nation’s entrepreneurs. One of the greatest threats to small businesses in the United States is the harmful impact of corporate monopolies and oligopolies, especially those who maintain control of key technologies and technology services. As our economy continues to become more integrated with digital technologies, small businesses have grown increasingly reliant upon an ever-shrinking number of firms. While I recognize the importance of technological development to economic growth, it is imperative that the federal government support the ability of small businesses to thrive and compete on a level playing field. As such, I oppose a partnership that would leave small businesses even more beholden to companies like Amazon, Google, Meta, and other dominant Big Tech firms. 

Amazon is notorious for undermining the exact type of small businesses that SBA is designed to support. According to internal company documents, Amazon compiles data on the sales, costs, and suppliers of small business sellers that use the platform. Then, Amazon undercuts those small businesses by selling its own copy-cat products at lower prices, while pushing the small business products down the website’s search results. It is unconscionable that the Small Business Administration should turn a blind eye to such actions as well as the investigations of this administration’s own Federal Trade Commission.

Similarly, the Federal Trade Commission has filed complaints against Meta, yet another alliance partner, over its “buy-or-bury” strategy to dominate the online media marketplace. There have been numerous instances in which Meta has purchased competing companies like Instagram and WhatsApp to gain dominance in areas where their own features and offerings have fallen short. Meta has also engaged in the espionage of app developers on their platform. If the products of these third-party developers succeeded, Meta would attempt to purchase them. If they rebuffed Meta’s offers, however, Meta would hide their applications in an attempt to eliminate any threat of competition. There is no reason for a company like Meta, which preys upon American small businesses to be included as a digital alliance partner.

Unfortunately, this is only the latest development in the federal government’s deepening entanglement with Big Tech. Recently, former Google Chief Executive Officer Eric Schmidt admitted to bankrolling dozens of senior White House staffers inside the Office of Science and Technology Policy, including current Chief of Staff Marc Aidinoff. In addition to funding the salaries of high-ranking officials in the Biden Administration, Schmidt also maintained a close relationship with President Biden’s top science adviser Dr. Eric Lander, who has since resigned over allegations of demeaning and mistreating staff. It is disappointing to now see this same trend taking hold at the Small Business Administration as well.

Small businesses have fostered the creation of 65.1% of all new jobs in the United States since 2000. As we emerge from the pandemic, we must do all we can to safeguard our economy against the crony corporate partnerships you have championed. I urge you to use your position to hold these predatory entities accountable instead of granting them cover and legitimacy to further prey upon our nation’s small businesses. Your decision to engage in a partnership with the greatest Big Tech offenders is wholeheartedly misguided, and I implore you to reconsider the entities with whom you shall enter into agreement and, true to your agency’s mission, make a concerted effort to ensure more successful small businesses in the technology sector are incorporated as partners into this initiative. Thank you for your time and attention to this matter.

Sincerely,

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