Apple, Google, Facebook, Amazon face potential regulatory control
(L-R) Amazon boss Jeff Bezos, Larry Page of Alphabet, Facebook COO Sheryl Sandberg, Vice President selected Mike Pence and presidential Donald Trump at Trump Tower December 14, 2016.
Timothy A. Clary | AFP | Getty Images
Politicians and technology leaders have spent well over a year discussing the proper role of technology industry regulators, who have assumed excessive influence over the US economy.
Monday was the day the speaker turned to early stages of action, and the market punished big tech.
Investors were most concerned about Facebook and Google's parenting letter on Monday, and sent stocks of each down more than 6%. Amazon dropped more than 5%, and Apple exceeded 1[ads1]%. In total, they lost over $ 130 billion in market value and led a 1.5% decline in the Nasdaq Composite, sending the technology heavy index to the review area – down more than 10% of record highs in April.
The following reports late Friday that the Justice Department is preparing an antitrust probe by Google, Reuters reported on Monday that the same department has been granted jurisdiction over Apple's practice as part of a broader review of the behavior of technical firms.
Meanwhile, the Federal Trade Commission has allegedly overseen Amazon and Facebook in looking at how these companies could potentially damage competition.
Probes are in their early stages, based on published accounts, so no significant fines, forced breaches, or business practices are expected at any time soon.
However, predicting a greater overview of four of the world's five most valuable companies (Microsoft's largest marketplace), regulators suggest that days of undeveloped technology industry growth can be numbered.
In a report on Thursday about the risks to Amazon, D.A. Davidson analysts highlighted the "potential of antitrust and regulation worldwide" as a barrier to future expansion. The United States represents only the last concern.
"In addition, foreign authorities are also aware of the dangers of allowing a few tech titans to have such an impact on the consumer's daily lives, including not only Amazon but also Apple, Facebook and Google, and the potential for regulatory disruption is increasing after the day, in our opinion, and therefore something we are following closely, says the report.
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