Artificial Intelligence: Examining Trends in Innovation and Competition

US-China Technology CompetitionHouse Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust · 2025-04-02 · 119th Congress
The House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust held this hearing to examine competition and innovation trends in artificial intelligence, weighing arguments for light-touch regulation against calls for continued antitrust enforcement. Begins at 0:14:22
Transcript
Highlights

Title

AI competition policy, antitrust enforcement, and FTC independence

Purpose

The House Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust held this hearing to examine competition and innovation trends in artificial intelligence, weighing arguments for light-touch regulation against calls for continued antitrust enforcement. Witnesses debated the competitiveness of the AI industry, the risks of state and EU-style regulation, and the implications of the Trump administration's attempted removal of two Democratic FTC commissioners, including witness Alvaro Bedoya. Begins at0:14:22

Who spoke

Chairman Scott Fitzgerald (R-WI)0:14:22: Argued AI competition is thriving at every layer of the stack and warned that overregulation, whether modeled on China or the EU, would entrench incumbents and slow innovation0:16:53; said existing antitrust laws are sufficient without a new regulatory regime0:18:24.

Ranking Member Jerry Nadler (D-NY)0:19:55: Stressed there is no AI exception to antitrust and privacy law0:19:55, detailed FTC actions blocking a major chip merger and studying AI partnerships0:21:56, and criticized the Trump administration's attempt to fire Commissioners Bedoya and Slaughter0:24:57.

Chairman Jim Jordan (R-OH)0:25:58: Said the Biden administration empowered unaccountable bureaucrats on AI and called for protecting free speech, avoiding weaponized antitrust, and rejecting international regulators setting US tech rules0:26:58.

Neil Chilson, Abundance Institute0:30:31: Testified US AI startups raised nearly $100 billion last year with 49 raising over $100 million each0:31:01, said the leading cloud firm holds only 7% market share0:32:02, and warned over 900 state AI bills threaten a damaging regulatory patchwork0:34:33.

Joseph Coniglio, ITIF0:35:34: Argued AI markets are highly competitive and that Europe's competitor-protection antitrust model helped cause its share of global wealth to fall by nearly half0:37:05; cautioned against both over- and under-enforcement of antitrust in AI0:38:36.

Jessica Melugin, Competitive Enterprise Institute0:40:38: Said the US holds 8 of the top 10 global tech firms by market cap versus zero for the EU0:42:40, cited Dutch firm Bird leaving the EU over the AI Act0:53:17, and urged Congress to preempt the state AI regulatory patchwork0:41:38.

Alvaro Bedoya, former FTC Commissioner0:45:11: Warned that cloud-AI developer partnerships may be limiting smaller startups' cloud access, citing an internal document describing inability to serve growing startup GPU demand0:46:41; described FTC allegations that Alexa retained children's voice recordings despite deletion requests0:47:42; and raised concerns about surveillance-based scanning of workers, including background actors and call-center employees, to train AI replacements0:48:43.

Rep. Craig Goldman (R-TX)1:01:51: Asked Melugin whether the Biden administration bypassed Congress via executive order on AI, and about the risks of state regulatory patchwork versus China1:01:51.

Rep. Jimmy Gomez (D-CA)1:05:53: Highlighted university research and immigrant entrepreneurs' roles in AI development via charts, and criticized administration cuts to research funding and immigration policy as long-term threats to AI leadership1:09:24.

Rep. Harriet Hageman (R-WY)1:11:56: Asked about Chinese state subsidies and the EU AI Act's disproportionate impact on American companies1:12:261:14:58.

Rep. Becca Balint (D-VT)1:18:00: Pressed Bedoya on AI's effects on workers, including actors/writers and algorithmic rent-pricing collusion allegations in the RealPage lawsuit, and hidden "no cockroach" fees at Greystar1:20:311:21:32.

Rep. Erin Houchin (R-IN), referred to as "gentlewoman from Illinois" region: not present; correction — Rep. Greg Harris... (R-NC)1:23:33: Praised Trump's AI executive order and asked Chilson about the Abundance Institute's recommendations to OSTP, including a Utah AI regulatory sandbox model1:26:041:27:35.

Rep. Raja Krishnamoorthi (D-IL)1:28:35: Accused Republican colleagues of favoring corporate interests, criticized DOGE and Elon Musk's data access, and asked Bedoya about AI's effects on workers, including a Pascagoula call-center employee wrongly docked over faulty AI transcription1:31:07.

Rep. Ben Cline (R-VA)1:33:37: Asked Melugin about risks of heavy-handed regulation ceding ground to China and about copyright/fair-use concerns for AI training data1:34:381:36:40.

Rep. Hank Johnson (D-GA)1:39:41: Questioned Melugin on the AI industry's shift from requesting regulation to opposing it, and pressed Bedoya on Elon Musk's dual role at DOGE and xAI accessing federal data including IRS and Social Security records1:42:44.

Rep. Jordan (recognized as full committee chairman, second round)1:46:16: Questioned Chilson and Bedoya about a prior FTC letter to Twitter seeking identities of journalists it communicated with, and about Ernst & Young's role as an assessor under a Twitter consent decree1:46:461:49:18.

Ranking Member Jamie Raskin (D-MD)1:54:50: Argued AI market concentration is a pressing antitrust concern, defended FTC independence citing Humphrey's Executor precedent, and said Trump's firing attempt against Bedoya and Slaughter undermines the "lead cop" on AI1:56:221:57:22.

Key moments

Chilson said US AI startups raised nearly $100 billion last year, roughly half of global AI investment, with 49 US startups raising over $100 million each0:31:01.

Bedoya cited an FTC staff report on cloud-AI developer partnerships and an internal cloud provider document stating it was "unable to serve a growing number of startups" needing GPU capacity0:46:41.

Melugin noted the US holds 8 of the top 10 global tech firms by market cap while the EU holds none, and that its AI regulatory framework now exceeds the size of its AI industry0:42:400:43:10.

Bedoya described FTC allegations that Amazon's Alexa retained children's voice transcripts even after parents requested deletion, justified by a need to train voice-recognition algorithms0:47:420:48:13.

Nadler noted the FTC's insulin-pricing case against the three largest pharmacy benefit managers was stayed the day before the hearing, with Bedoya estimating adjudication delayed at least 105 days0:56:490:58:20.

Bedoya cited the abandoned Nvidia-Arm merger, noting Arm's valuation rose from $40 billion at the time of the deal to about $114 billion after FTC opposition1:00:211:00:51.

Balint and Bedoya discussed RealPage rent-algorithm collusion allegations and a simultaneous FTC suit against landlord Greystar over hidden fees, including "no cockroach" charges, with cited rent increases over $800/year1:21:321:22:32.

Jordan pressed Chilson and Bedoya on a prior FTC letter demanding Twitter identify journalists it communicated with (naming Barry Weiss, Matt Taibbi, Michael Shellenberger, Abigail Shrier) and asked about alleged coercion of Ernst & Young as consent-decree assessor; Bedoya said he was not familiar with the specific communication1:46:461:49:18.

Krishnamoorthi and Bedoya raised concerns that Elon Musk's DOGE access to IRS, Social Security, and federal payroll data could give his AI company xAI a competitive data advantage1:42:131:44:46.

Raskin argued the Supreme Court's Humphrey's Executor precedent bars the president from firing FTC commissioners without cause, calling Trump's removal attempt against Bedoya and Slaughter part of a broader concentration of executive power1:56:22.

Metadata

CommitteeHouse Judiciary Subcommittee on Administrative State, Regulatory Reform, and Antitrust
Chamber / CongressHouse · 119th Congress
Date2025-04-02
TypeHearing
Witnesses
Mr. Neil Chilson — Head of AI Policy, Abundance Institute
Mr. Joseph Coniglio — Director of Antitrust and Innovation, Information Technology & Innovation Foundation
Ms. Jessica Melugin — Director of the Center for Technology and Innovation, Competitive Enterprise Institute
Mr. Alvaro Bedoya — Former Commissioner, Federal Trade Commission
Videoyoutube
Transcript212 caption blocks · 17,056 words · 2:00:53 runtime
EventCongress.gov 118081