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Last week, the two federal antitrust agencies – the Department of Justice and the Federal Trade Commission – apparently divided Silicon Valley for potential probes. Reports have indicated that the Department of Justice has taken over responsibility for Google and Apple, while the FTC could take it to Amazon and Facebook.
Now, according to CNN Business, the House Judiciary is currently launching a "thorough" antitrust investigation in the technology sector, with the above-mentioned four companies being obvious potential targets.
Congress is more limited in its ability to directly attack the tech giants whether it's the DOJ or the FTC – it does not have the power to launch business dissolutions in the manner of Ma Bell or to impose fines – but, as CNN noted, it can "compel testimony." executives, collect documents and force public debate. In other words, members of Congress can not only create new political headaches for the companies surveyed, but they can also use the hearings as an opportunity to defend their interests. potential legislative response on the road.
CNN wrote that Democratic Representative David Cicilline (Rhode Island), who heads the committee's antitrust subcommittee, said the survey would look at whether technology companies have gained too much market power to the detriment of journalism, protection of consumer privacy and competition in the sector. Cicilline also told the network that part of the committee's decision was to compel the DOJ and the FTC to defend themselves, with both agencies routinely accused of not aggressively enforcing antitrust law in the past. By CNN:
Key areas of the survey include the impact of the technology industry on local journalism, the protection of consumer privacy and the opportunity for new startups to enter the market, according to Cicilline. At the heart of the investigation are concerns over what Cicilline called "formidable market power," which in some cases has led companies to accumulate substantial political power.
Committee officials informed Amazon, Apple, Google and Facebook of the upcoming investigation. Cicilline stated that he wanted to hear from senior technical officials and that he would not hesitate to give subpoenas to companies that would not cooperate … "I'm not sure. I do not have much confidence that [the DOJ and FTC] will do the work, "said Cicilline.
Cicilline also cited Google's 90% control over search engine utilization, Amazon's estimated share of 50% of the e-commerce market and Facebook's repeated "misbehavior" while He was talking to reporters on Monday, writes the Daily Beast.
"A small number of unregulated dominant platforms hold tremendous power over online commerce, communication and information," the Judicial Committee told NBC News and other media in a statement (signed by members of both parties). "Based on investigation reports and monitoring by policy makers and international regulators, it is feared that these platforms will have the motivation and ability to undermine the competitive process."
"The Antitrust Subcommittee will conduct a thorough review of the market power held by the giant technology platforms," the statement said. "It's the first time Congress is investigating this behavior."
As the New York Times noted, the decision of the judiciary might also indicate that lawmakers are starting to consider revising their antitrust laws, at a time when technology companies are facing a particularly hostile reception in a large part. part of DC.
Democratic politicians, including presidential candidates like Elizabeth Warren and Kamala Harris, are increasingly likely to think that regulators should seriously consider dismantling some of the biggest players in the sector. Republicans tend to be much more likely to consolidate businesses, but the current government has launched an essentially one-sided vendetta against high-tech companies over unfounded allegations that they systematically repressed conservative views.
In turn, many technology companies have significantly increased their spending on lobbying. Last year, some of the major players (including Google, Facebook, Amazon, Microsoft, Apple and Twitter) lost a combined total of $ 64 million plus efforts to strengthen political influence. Google and Facebook recorded record spend of $ 21.2 million and $ 12.62 million respectively, while Amazon lost $ 14 million and Microsoft spent $ 9.52 million. Apple spent about $ 6.62 million, a slight decrease, but Twitter spent more than $ 1 million for the first time in its history.
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