I help lead a small business here in Iowa that’s manufactured 100% American-made knives and kitchenware since 1948. For nearly 80 years, we’ve thrived by remaining committed to made-in-America quality and value — while embracing smart digital tools that help us compete with much bigger companies.
So it’s worrying that Congress is considering legislation, the American Innovation and Choice Online Act (AICOA), that would break many of those tools. AICOA’s proponents, including Sen. Chuck Grassley of Iowa, say the services integrated within leading tech companies’ tools — such as Google Workspace’s email and video-meeting services, or Amazon’s shipping and warehousing services — have an unfair advantage over competitors’ services. Accordingly, AICOA would force leading companies to split apart their integrated tools.
That would hurt millions of small businesses like mine. We use top tech companies’ integrated tools because they’re efficient and affordable — saving us time and money while helping us grow and succeed in today’s digital economy. If those tools no longer work, we’ll take a serious hit.
Here’s an example. Right now, when someone searches online for our business, our Google Business Profile instantly pops up, displaying key information including customer reviews and a map to our location. It’s convenient for customers, and a valuable marketing tool for us — and it’s free. Under AICOA, however, Google would have to break up those integrated services and give equal prominence to lower-quality competitors like Yelp or Mapquest. That would make customers’ search experience confusing and time-consuming, reducing our visibility and hurting our sales. Moreover, companies like Yelp often charge for services Google offers for free, such as updating business hours. In short, we’d pay more for less effective tools.
AICOA would break another high-value integrated tool: Fulfillment by Amazon (FBA). FBA offers all-in-one shipping and logistics services, allowing small businesses like ours to provide Amazon customers with fast, low-cost delivery they love. FBA also saves time, minimizes shipping-related headaches, and keeps costs low. Amazon doesn’t require small businesses to use FBA, but leveraging the company’s streamlined services is a no-brainer. If FBA no longer worked, small businesses — and our Amazon customers — would likely pay more for slower, less reliable delivery.
Worryingly, AICOA would prohibit covered tech companies from integrating their own AI products into their digital tools. That threatens free and low-cost new tools popular with small businesses and consumers, including generative AI summaries and AI-powered product recommendations.
A few years ago, I met Senator Grassley, whose family has purchased our products. When we spoke about AI, he was candid about how quickly AI technologies are evolving. Unfortunately, AICOA’s sweeping prohibitions would likely degrade integrated AI-powered tools that empower small businesses like ours to compete with bigger rivals. We use Meta, Google, and Amazon’s built-in AI-powered ad tools, for example, to reach customers who are likely to be interested in our products — minimizing our advertising costs while boosting our sales. Similarly, Microsoft’s integrated AI-powered analytics tools show us which parts of our website attract the most customers — allowing us to make smart changes and more sales. If AICOA passed, we could lose the capabilities provided by those integrated tools.
We already know how AICOA would play out. That’s because it’s modeled on the European Union’s Digital Markets Act (DMA), which was enacted in 2022. Since then, the DMA has cost European small businesses billions in lost revenue and new compliance costs, while failing to catalyze competition and innovation.
AICOA failed to pass in 2021 and 2024 because of bipartisan concerns about its impact on small businesses; a 2022 study estimated that the bill would cost small businesses $100,000, on average, in the first five years after its passage. I urge congressional leaders to nix AICOA for a third and final time, and avoid disrupting the digital tools that help small businesses reach customers, operate efficiently, and compete in today’s economy.
Andrea Ramker is vice president of business development at Waverly, Iowa-based RadaCutlery.
This article originally appeared on Des Moines Register: Don’t break the tech tools small businesses use to compete | Opinion
Reporting by Andrea Ramker, Guest columnist / Des Moines Register
USA TODAY Network via Reuters Connect
By Andrea Ramker, Guest columnist | USA TODAY Network
