Big tech lobbyists have massive influence in shaping IP policy.

How does regulatory capture emerge? More specifically, how does a policy network take shape and settle on cultural frames that favor one industry, at the potential expense of other interests? In the case of digital trade, technology lobbyists mobilized to promote a libertarian framework for data, drawing on the existing beliefs in laissez-faire economics and the potential for states to distort markets, slow economic growth and restrict innovation. By extending this schema, lobbyists attempted to apply a free market logic to the treatment of data flows for Internet-based commerce. In this section, I demonstrate how technology lobbyists established themselves in the trade policy network while framing support for specific policies to suppress other interests, particularly of intellectual property industries and consumer rights advocates.

5.1 Network embedding

After being threatened by proposed copyright liabilities in 2010, technology companies reactively banded together with the intention of embedding themselves in policy networks (Stirland, 2012). While they were previously ‘allergic to Washington’, as one trade negotiator described, over the course of a decade, technology companies hired lobbyists and joined trade associations with the goal of proactively influencing international trade policy. Lobbyists’ ties to political appointees and staff in the second term of the Obama Administration (2012–2016) grew progressively, and despite turmoil in the Trump Administration (2016–2020), continued with non-political staff. These relationships between lobbyists and trade negotiators have progressed to the point where lobbyists no longer react to trade policy, but rather, proactively shape it.

Technology companies’ initial efforts at network embedding took several forms, from joining the existing trade associations with well-equipped lobbyists, and forming new trade associations, to hiring or retaining lobbyists to advocate directly for their corporate interests. When Internet companies such as Amazon, Google and Facebook sought to increase their footprint in Washington, they joined the existing trade associations, such as the Coalition of Services Industries and the Information Technology Industry Council, using their membership to steer the policy objectives of these groups. In 2012, 14 companies formed the Internet Association, a trade association representing the interests of solely Internet-based companies. Furthermore, companies and trade associations seized on the revolving door to hire former officials from Congressional committees and trade agencies as lobbyists. These lobbyists then pursued multiple avenues for forming and deepening ties with public officials, ranging from formalized procedures, such as hearings, to informal ad hoc meetings, social appointments and appearances at public events.

Trade policy professionals form ties with their colleagues and other policy professionals, across sectors, through repeated formal and informal interactions. Thus, interactions between the government officials and lobbyists are multiplex: individuals both perform their professional duties and develop lasting ties distinct from professional duties. Many individuals are also former classmates and colleagues. Chris, a former Commerce official turned tech lobbyist, emphasized the importance of building rapport over time.

Sometimes, [meetings are like] hey, let’s grab lunch, let’s grab coffee, and catch up. And half of it is about our kids, and half of it is about this [work related issue]. We’ll have a formal meeting [with government officials], but obviously we chitchat before and after. Because we're human […] So, a lot of it is just normal human interaction, right?

Although lobbyists deliberately form ties with public officials for the purpose of gaining influence, public officials also willingly cultivate these ties as well. The belief that corporations hold valuable expertise is widespread among trade negotiators. By referring to lobbyists as ‘stakeholders’ rather than as lobbyists, the trade negotiators cast lobbyists as experts and valid participants in the public policymaking process. Public officials view it as their duty to meet with lobbyists on a regular basis. Mike, a trade negotiator, explained his approach: