Apple and Google Shut Down California Bill That Threatened Their Power

Some of the world’s biggest tech companies, including Apple (AAPL) and Google (GOOGL), quickly shut down a proposed California law that would have limited their power. The bill, known as the “Based Act,” aimed to stop large platforms from favoring their own products over smaller competitors, especially in places like app stores and search results. It was backed by smaller tech firms and groups like Y Combinator, which argued that it would create a more level playing field. However, the proposal collapsed within weeks after a major lobbying effort from big tech and business groups.

Indeed, organizations like the Chamber of Progress and the California Chamber of Commerce led the effort. They argued that it might make search results worse, slow down services, and reduce security on devices. Meanwhile, smaller companies tried to fight back by saying that these claims were exaggerated. Still, big tech’s influence proved to be decisive, and the bill ultimately failed in a key committee vote.

This situation shows just how much political power major tech companies hold, especially in California, where new laws can have a global impact. Similar rules in Europe have already led to billions in fines, which explains why companies are eager to stop them from spreading to the U.S. In fact, this is not the first time big tech has successfully blocked such efforts, as they previously spent over $100 million to defeat a similar federal bill. Nevertheless, supporters of the Based Act may not be done, as its sponsor has suggested that another version could still be introduced in the future.

Which Tech Stock Is the Better Buy?

Turning to Wall Street, out of the two stocks mentioned above, analysts think that AAPL stock has more room to run than GOOGL. In fact, AAPL’s price target of $299.513 per share implies 12.3% upside versus GOOGL’s 10.2%.