Big Tech faces broad US Justice Department anti-trust probe
The US Justice Department said on Tuesday that it was opening a broad investigation of major digital technology firms into whether they engage in anticompetitive practices, the strongest sign that the Trump administration is stepping up scrutiny of Big Tech.
The review will look into "whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers," the Justice Department said in a statement.
The Justice Department did not identify specific companies but said the review would consider concerns raised about "search, social media, and some retail services online" — an apparent reference to Alphabet Inc, Amazon.com Inc and Facebook Inc.
A Justice Department spokesman declined to provide a list of companies that would be scrutinized.
Google and Apple declined to comment, referring to prior statements by executives, while Facebook and Amazon did not immediately comment.
Facebook fell 1.7 percent in after-hours trading, while Alphabet fell 1 percent, Amazon was down 1.2 percent and Apple was 0.4 percent lower.
The announcement comes a day before the Federal Trade Commission is set to announce a $5 billion penalty to Facebook for failing to properly protect user privacy.
Senator Richard Blumenthal, a Democrat, said the Justice Department "must now be bold and fearless in stopping Big Tech's misuse of its monopolistic power. Too long absent and apathetic, enforcers now must prevent privacy abuse, anticompetitive tactics, innovation roadblocks, and other hallmarks of excessive market power."
The Justice Department said the review "is to assess the competitive conditions in the online marketplace in an objective and fair-minded manner and to ensure Americans have access to free markets in which companies compete on their merits to provide services that users want."
Reuters reported on May 31 that the Justice Department was preparing an investigation of Google to determine whether it broke antitrust law.
The review will look into "whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers," the Justice Department said in a statement.
The Justice Department did not identify specific companies but said the review would consider concerns raised about "search, social media, and some retail services online" — an apparent reference to Alphabet Inc, Amazon.com Inc and Facebook Inc.
A Justice Department spokesman declined to provide a list of companies that would be scrutinized.
Google and Apple declined to comment, referring to prior statements by executives, while Facebook and Amazon did not immediately comment.
Facebook fell 1.7 percent in after-hours trading, while Alphabet fell 1 percent, Amazon was down 1.2 percent and Apple was 0.4 percent lower.
The announcement comes a day before the Federal Trade Commission is set to announce a $5 billion penalty to Facebook for failing to properly protect user privacy.
Senator Richard Blumenthal, a Democrat, said the Justice Department "must now be bold and fearless in stopping Big Tech's misuse of its monopolistic power. Too long absent and apathetic, enforcers now must prevent privacy abuse, anticompetitive tactics, innovation roadblocks, and other hallmarks of excessive market power."
The Justice Department said the review "is to assess the competitive conditions in the online marketplace in an objective and fair-minded manner and to ensure Americans have access to free markets in which companies compete on their merits to provide services that users want."
Reuters reported on May 31 that the Justice Department was preparing an investigation of Google to determine whether it broke antitrust law.
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