Meta, Microsoft, Amazon, Alphabet Questioned By US Lawmakers On Safeguards For Undersea Cables Amid China, Russia Concerns

Three Republican House lawmakers on Monday asked the CEOs of Alphabet (GOOG), Meta Platforms (META), Amazon (AMZN), and Microsoft (MSFT) if there are sufficient safeguards in place to protect submarine communications cables amid growing concerns about China and Russia. 

These tech companies are heavily invested in the cable systems, either operationally or through ownership stakes. Meta’s stock was up 1.4% in afternoon trade, while retail sentiment on Stocktwits edged higher with ‘extremely bullish’ territory. Google-parent Alphabet’s stock climbed 2.6% on Monday, with retail sentiment moving higher within the ‘bullish’ zone.

Shares of Amazon rose 1.5% and Microsoft’s stock edged 0.08% higher in afternoon trade. Retail sentiment around Amazon was in the ‘bearish’ zone, while retail sentiment around Microsoft was in ‘neutral’ territory.According to a Reuters report, the letter warned that Chinese-affiliated entities such as SBSS, Huawei Marine, China Telecom, and China Unicom continue to provide maintenance or servicing for cable systems in which the companies may have operational involvement or ownership stakes.

It was signed by Representative John Moolenaar, who chairs a House committee focused on China, along with two other Republicans. Recently, Washington has been raising alarm about the network of more than 400 subsea cables that handle 99% of international internet traffic. 

The Federal Communications Commission announced last week that it plans to adopt new rules prohibiting undersea communication cables from connecting to the U.S. if they contain Chinese technology or equipment.

"We have seen submarine cable infrastructure threatened in recent years by foreign adversaries, like China," FCC Chair Brendan Carr said in a statement. "We are therefore taking action here to guard our submarine cables against foreign adversary ownership, and access as well as cyber and physical threats."

According to Reuters, U.S. regulators have helped block at least four planned subsea cables that would have connected the U.S. to Hong Kong since 2020.

Read also: OpenAI, UK Government Strike Strategic Deal On AI Safety And Infrastructure

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