Meta Quietly Funding Lobbying Group to Influence Congress, Attack Rivals

© AP Photo / Gemunu AmarasingheThe U.S. Capitol building is seen before sunrise on Capitol Hill in Washington, Monday, March. 21, 2022.
The U.S. Capitol building is seen before sunrise on Capitol Hill in Washington, Monday, March. 21, 2022. - Sputnik International, 1920, 17.05.2022
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Meta, the parent company of Facebook, Whatsapp, Instagram, Giphy, and the VR company formerly known as Oculus, among other platforms, generated revenue of $117.9 billion in 2021.
Meta, formerly Facebook Inc, has been pouring millions of dollars into the lobbying firm American Edge, with the intention of influencing Congress and public opinion on antitrust legislation targeting US tech giants.
American Edge has placed op-eds in regional newspapers, commissioned studies designed to support Meta’s narrative around antitrust regulations, collaborated with minority business associations, partnered with conservative think tanks, and brought on former national security officials to create an eclectic alliance designed to push Meta’s agenda.
According to the Washington Post, tax records show that the group was entirely formed by Facebook/Meta, receiving a single $4 million donation between December 2019 and October 2020.
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In March, after senators advanced a bill that would, among other things, prevent tech platforms from giving preference to their own products over their competitors, op-eds started being published in papers around the country arguing that the legislation was misguided and could hurt small businesses. The stream of op-eds was accompanied by a national ad campaign also spelling doom for small businesses if the legislation were to pass, but the ads were not funded by any small business group but by Meta’s American Edge.
An argument made by American Edge and Facebook/Meta plays off fears that China and Russia would gain a technological advantage over America if the government were to regulate how tech companies do business.
Meanwhile, Facebook/Meta took a different approach publicly, saying that it wanted clarity from Congress on issues like content moderation and was in favor of updating internet regulations.
But the ads created by American Edge paint a different picture, one where regulation from Congress is labeled as “misguided” and intended to “take away the technology we use every day.”
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Meta also hired a GOP consulting firm to attack the Chinese-owned social media platform TikTok. It wasn't the first time they had used a surrogate to attack a rival.
In 2011, when Google was launching its Google+ platform, an ill-fated attempt to compete with Facebook directly, Facebook/Meta hired a PR firm to attack Google’s privacy practices.
In 2020, American Edge provided the Black U.S. Chamber of Commerce a grant, according to tax records. Less than a year later, the organizer’s leader, Harry Alford, wrote an op-ed titled “Tech platforms are vital for nation to support Black-owned businesses amid pandemic.”
Last month, former national security officials wrote a letter to congressional committees asking them to reconsider competition bills. Two of the signers were Frances F. Townsend and Michael Morell, who sit on the board of American Edge. They did not disclose the connection in the letter, though Morell told the Washington Post that the connection had been disclosed in a press release.
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American Edge also funded a survey through Ipsos that seemed designed to paint big tech regulation as a minor concern for most Americans. It argued that legislators working on it are out of touch with their constituents.
While some ads and op-eds mentioned their connection to American Edge, they did not mention any connection to Facebook/Meta.
Doug Kelly, the CEO of American Edge, insists that his group is not controlled by Meta. He told the Washington Post that while the group started with a “seed” from Facebook, it has since gathered other sources of income and plans to find more in the future.
In addition to their funding of American Edge, Meta spent over $20 million lobbying Congress last year, the second most of any technology company, just behind Amazon’s $20.6 million.
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