- Last year, CEOs such as Mark Zuckerberg, of Facebook, witnessed a great notoriety, but the action will now shift to a collection of evidence and more banal but more substantial documents, which would form the basis of lawsuits or regulations.
Driving the news: The Judiciary Committee of the House said Monday that it was launching a bipartisan investigation into whether the major technology platforms were engaged in monopolistic practices.
- A person familiar with the investigation stated that in addition to the public hearings, the investigation would include requesting documents from a wide range of companies.
- This could allow the committee to receive information from small competitors of the technology giants, who would otherwise not to testify publicly, said the person.
- "Given the growing tide of consolidation and consolidation of our economy, it is essential that we examine the current state of competition in digital markets and the strength of antitrust laws," said the Chairman of the Committee. representing Jerrold Nadler (D-NY).
- Technology stocks fell on Monday due to the interest shown by the federal government for both companies.
Between the lines: The investigation could help legislators build a factual record for developing legislation remodeling the country's antitrust laws, which, according to the reformers, are insufficient to limit the power of corporations as it exists today. hui.
The announcement followed reporting over the weekend and Monday that the Department of Justice and the Federal Trade Commission had divided the field of investigations of anticompetitive behavior of technology giants.
Why it's important: Of the many ways critics want to address Big Tech concerns, antitrust has always been one of the most important, although it has been widely regarded as the least likely route.
- This could lead to measures as serious as the dissolution of the companies, but even if not, it could seriously distract the efforts of the platforms to develop their core businesses and to anticipate new waves of technological innovation. Microsoft learned this lesson the hard way after its antitrust fight with Washington two decades ago.
What we are looking at: Congressional hearings on the issue will take place in the coming months, and signs that the DOJ and the FTC are advancing in official investigations of the tech giants could come in the form of official investigations sent to companies or to their competitors.
Our thought bubble: Once such requests have been launched, they develop their own momentum, even if they advance at a lead pace. These companies are probably facing years of entanglement.
