- When House lawmakers released a 449-report earlier this month calling for new antitrust legislation against big tech companies, it lambasted Google, Apple, Amazon, and Facebook for contributing to an innovation “kill zone” that it said hurts startups.
- But a growing number of VCs and industry leaders are challenging such claims, calling them misleading.
- VCs say that practices like acquisitions, which the report wants to make more difficult for large tech companies to do, actually benefits startups.
- They also point to data showing that the rise in venture capital funding in recent years has accompanied the rise of big tech.
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Buried in the sprawling, 449-page Congressional report spearheaded by House Democrats about regulating big tech is a recommendation that is making the venture capital world very nervous.
To make it harder for big tech companies to snuff out young, upstart competitors by buying them,