The House Judiciary Committee has launched a bipartisan sweeping probe into major tech companies, with hearings that will examine ‘dominant, unregulated’ platforms.
The hearings come amid increased scrutiny of the power of big tech firms like Apple, Google, Facebook, and Amazon, which already have come under congressional scrutiny and drawn calls for regulation.
A statement by Judiciary Chairman Rep. Jerold Nadler of New York did not identify individual companies, but prior headlines left little doubt who the players would be.
Rep. Jerrold Nadler, D-NY, Chairman of the House Judiciary Committee, has launched an investigation into big tech firms and their ‘extraordinary power’
‘A small number of dominant, unregulated platforms have extraordinary power over commerce, communication, and information online,’ Nadler said in a statement announcing the hearings.
‘Based on investigative reporting and oversight by international policymakers and enforcers, there are concerns that these platforms have the incentive and ability to harm the competitive process,’ he said.
He did not promise a legislative response, but his language suggested one could come.
‘The Antitrust Subcommittee will conduct a top-to-bottom review of the market power held by giant tech platforms. This is the first time Congress has undertaken an investigation into this behavior,’ Nadler said.
The move follows news that the Federal Trade Commission (FTC), will lead an antitrust investigation into how Facebook Inc’s practices affect its digital competition, leaving the Justice Department control over a possible Google probe. Facebook CEO Mark Zuckerberg has faced pressure from Congress over company practices
Representative Doug Collins (Republican of Georgia) also released a statement backing the probe
Apple CEO Tim Cook waves after speaking at the Apple Worldwide Developers Conference in San Jose, Calif., Monday, June 3, 2019
Amazon has come under increased political pressure for practices that critics, including Sen. Elizabeth Warren, have called anti-competitive
Google’s search engine has drawn congressional scrutiny
‘Given the growing tide of concentration and consolidation across our economy, it is vital that we investigate the current state of competition in digital markets and the health of the antitrust laws,’ he added.
The antitrust subpanel is overseen by Rhode Island Rep. David Cicilline, who has been an outspoken figure in the Mueller investigation.
The probe includes backing from both Nadler and the Judiciary panel’s top Republican, Rep. Doug Collins of Georgia. The two men have engaged in bitter exchanges over the Russia probe.
‘As tech has expanded its market share, more and more questions have arisen about whether the market remains competitive,’ said Collins in a statement. ‘Our bipartisan look at competition in the digital markets gives us the chance to answer these questions and, if necessary, to take action.’
The probe is set to look at key areas of the market power of the tech companies, who have led a surge in U.S. economic growth while also amassing increased market share in the lucrative industry that touches virtually every American in one way or another.
Massachusetts Sen. Elizabeth Warren, a presidential candidate, has blasted Amazon, Facebook, Google with squeezing out competition and has called for breaking up the companies.
The move comes as news emerged that the Federal Trade Commission (FTC) will lead an antitrust investigation into how Facebook Inc’s practices affect its digital competition as part of an arrangement that would give the Justice Department control over possible Google and Apple probes.
The news caused stock prices to tumble on Monday, wiping more than $149.4 billion off the value of some of America’s biggest technology firms.
The FTC and the Justice Department both oversee antitrust issues in the U.S. and must establish who will take the lead in different investigations into competitive practices.
Citing unnamed sources, The Wall Street Journal reported on Monday that the FTC secured the rights to begin a potential investigation into whether Facebook engaged in what it called ‘unlawful monopolistic behavior.’
The Justice Department, in turn, will lead any possible Google probe, as well as any resulting review of Apple’s degree of influence over app development, the New York Times reported.