Tech industry group CEO: 'Amazon is basically providing for the country at this point'

Tech companies have seen increased demand and greater success during the pandemic fallout.

The Washington Examiner interviewed Gary Shapiro, CEO of the Consumer Technology Association and one of the top lobbyists in Washington, to discuss the industry's fortunes. The CTA represents more than 2,200 consumer technology companies. It represents both international behemoths such as Amazon, Google, and Facebook and new startups.

Prior to joining the association in 1982, Shapiro was an associate at the law firm Squire Sanders. He has also worked on Capitol Hill as an assistant to a member of Congress. He received his law degree from Georgetown University Law Center and studied economics and psychology at Binghamton University. Shapiro, 63, is married to Dr. Susan Malinowski, a retina surgeon.

Washington Examiner: Are there any specific challenges that you have for the tech industry, in terms of difficulties or struggles you're facing right now? Any need for assistance or aid, as so many others require?

Shapiro: No, we don't need help. So, we don't ask for aid for the industry. We don't need the additional revenue. The reason being is, for 15 years, we’ve been concerned about the federal debt. And that's a big threat to the health of the U.S. economy. And we're entering a serious situation that keeps getting worse. So, we're not opposing these relief measures that Congress is doing, but we're not asking for anything from our industry.

Washington Examiner: What would you like to see from the federal government, then?

Shapiro: What we are looking for is some predictability and reason, and we’re definitely engaged on the tariff issue. We think that tariffs should be rolled back. We do perceive our challenges with China that have to be addressed or want to talk about them. And we also are looking at regulations, which hurt us. For example, one of the unique asks in the tech industry is some of the competitors to the tech industry we have, like the motion picture industry, and others who push limitations on the internet with Section 230. They want to roll back that provision, which basically protected providers of services from being responsible for user comments, and they want to change that dramatically. So, we are fighting that, and we're fighting a whole bunch of other things that can hurt the tech industry, but we're not out there with our hand out asking for money. I'm even trying to think of one tech organization right now that’s received government aid, and I'm not aware if there is one.

Washington Examiner: The tech industry is in a much stronger position currently than perhaps many others. So, there's not as much of a need to ask for relief, it seems, yes?

Shapiro: The tech industry is providing a lot of solutions now. They're doing so many different things to help. If we had the virus before the tech industry [was] where it is today, let's say 15 years ago, we wouldn't have all this ability to talk into things and get things done virtually. You know, a large percentage of Americans are working from home, and most Americans use a restaurant delivery service. Amazon is basically providing for the country at this point. The tech industry is doing so much to keep the country going. Right now, I think we’ve stepped up and are doing a good job.

The only ask is, I have publicly called for a moratorium on attacking tech companies, trying to break them up, trying to go back on 10 years' worth of acquisitions. We have our own government fighting our global leading companies like Google and Facebook and Microsoft and Qualcomm and Intel and Twitter and Apple. There’s been a history of attacking successful U.S. companies by our own federal government, and it's time for it to stop. Tech is providing the solutions now; they're not causing the problems. Tech is in the helping out business. Increasingly, this happens through drones, self-driving cars, video conferencing, all these services that are out there for free. Artificial intelligence is helping get the vaccines quicker. There's so many different things. So, we're not before Congress asking for a handout. What we're offering is our hand to get people lifted up.

Washington Examiner: On that topic of Congress and mergers, I was curious, your thoughts about Democrats and Republicans are disagreeing right now about merger blockages and specifically corporate mergers. Democrats want to put a stop to all mergers during the coronavirus pandemic, and, of course, Republicans don't think that's appropriate. Where does the industry come down on this issue, and why?

Shapiro: Well, I think the industry is probably unanimous on this one. That is absolute craziness. If you take away the ability of startups to sell themselves, then you dry up investment money. If you dry up investment money, you kill a lot of innovation and entrepreneurship in this country. So, to say the only reason people invest in companies is because they think they're going to get an exit — the only way you can get an exit is if the company goes public, or [if] you’re doing well enough that you’re filling out some dividends and you could sell your interest to another private party or an acquisition. Most of the money for the acquisitions comes from some of the biggest companies and apps that help them get stronger. That helps American companies get strong. I can't think of a worse policy for America than to stop acquisitions because it dries up investors' money, it cooks innovation, and it just cripples American companies compared to the rest of the world. I can’t think of a worse Democratic policy.