While the Fed's loom, US states hit Facebook, Google with new probes
WASHINGTON (AP) – Two groups of states are targeting Facebook and Google in separate antitrust probes, expanding Big Tech's scrutiny beyond extensive federal and congressional investigations into their market dominance.
Facebook and Google are two of the world's largest and most ubiquitous technology companies. The billions who use their services to post on social media, upload videos or search ads are targeted by technology companies for their personal data – a valued asset that enhances companies' power. Regulators are investigating whether companies have used their market power to shrink competition, potentially raise prices and harm consumers.
Dissatisfaction with what the federal government has done so far may be to force some states to join forces to conduct their own investigations, and possibly to pursue more aggressive sanctions. For example, the Federal Trade Commission's recent $ 5 billion fine against Facebook for breaches of privacy was criticized by consumer advocates and a number of public officials as being too lenient.
"States see it as part of their role to fill a vacuum," said Jay Himes, a New York antitrust attorney. Himes, a former head of the antitrust agency in the New York state attorney's office, worked on the state's antitrust case against Microsoft about 20 years ago.
New York Attorney General Letitia James said Friday that her probe will investigate Facebook's dominance and any group of competing contests.
A separate group of state attorneys generates announces on Monday the Washington launch of an investigation into "whether major technology companies have engaged in anticompetitive behaviors such as stifled competition, restricted access and harmed consumers," a Texas State Attorney Ken Paxton said Friday. The Washington Post and The Wall Street Journal, citing sources they did not identify, have reported that the target will be Google.
The Facebook logo at the company's headquarters in Menlo Park, California, March 28, 2018. (Marcio Jose Sanchez / AP)
Both groups of state attorneys general include Democrats and Republicans. Along with James, a Democrat, in the Facebook investigation, attorneys are the general in Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia.
With around 2.4 billion users around the globe and a large social media presence, Facebook has scandalized a number of privacy scandals and the use of Russian operators in the 2016 presidential campaign.
"Even the largest social media platform in the world must follow the law and respect the consumers, "James said.
Critics worry that Facebook could crush competitors either by purchasing them or using the vast resources to emulate the services they offer. This can ultimately reduce viable options for consumers who, for example, look for comparable services that reduce tracking for targeted advertising. Businesses, including mom and pop stores, may have to pay more for ads if they have fewer choices to reach consumers online.
The U.S. Justice Department opened a sweeping antitrust investigation of major technology companies this summer to see if their online platforms have harmed competition, suppressed innovation or otherwise harmed consumers. The Federal Trade Commission has run its own competition probe by Big Tech, as has the House Judiciary Subcommittee on Antitrust.
The lawyer who led the investigation, Democratic Representative David Cicilline of Rhode Island, said Friday the state probe on Facebook is "Totally appropriate."
"Facebook has proven time and time again that it cannot be trusted to regulate itself," Cicilline said.
Democratic Representative David Cicilline of Rhode Island, left, leader of House Judiciary antitrust subcommittee, talks with ranking member, Republican Rep. Jim Sensenbrenner of Wisconsin, during a House Judiciary hearing committee with representatives from major technology companies July 16, 2019 on Capitol Hill in Washington. (AP Photo / Patrick Semansky)
States have the power to make major changes in the technology industry – especially if enough of them merge, said Matt Stoller, a fellow at the Open Markets Institute, a group advocating the division of corporate monopoly . Although states have limited jurisdictions, he said, as a few of the larger states get involved, there may be changes that may affect most of the country.
"You really have to break their power, and I think states are more likely to do that than anyone else," Stoller said in an interview.
Facebook said it plans to "work constructively" with state attorneys and wants a
"People have more choices for every one of the services we provide," said Will Castleberry, vice president for state and local politics. “We understand that if we stop innovating, people can easily leave our platform. This underlines the competition we face, not only in the United States, but across the globe. "
Google said it welcomes government oversight to ensure companies comply with the law. The company said it has already responded to many government agencies around the world on how it operates and expects state attorneys to generally ask similar questions. [19659003] "We look forward to showing how we invest in innovation and providing services that people want and participate in strong and fair competition," Kent Walker, senior vice president for global affairs, said in a blog post.
This image from January 3, 2013 shows Google's headquarters in Mountain View, California. (AP Photo / Marcio Jose Sanchez, File)
Big Tech will not be a simple target. or free online services.
Traditional antitrust laws focus on dominant businesses that harm consumers, typically through practices such as island raises prices for consumers. However, many technology companies offer free products that are paid for a largely invisible trade in personal data obtained from these services. Others like Amazon offer consistently low prices on a wide variety of goods.
