FTC Says Multiple Tech Antitrust Probes Are Under Way -- Update
November 18 2019 - 02:13PM
Dow Jones News
By Ryan Tracy
WASHINGTON -- The Federal Trade Commission has multiple ongoing
antitrust investigations into online platforms, the agency's
chairman said Monday, suggesting a broader review of the technology
sector than previously known.
FTC Chairman Joseph Simons said that in addition to the agency's
investigation of Facebook Inc., which that company has disclosed,
the agency has "multiple other investigations going on with major
platforms."
The FTC has interviewed sellers on Amazon.com Inc.'s online
marketplace, according to some of the sellers who have spoken with
the agency. Amazon hasn't disclosed being notified of a formal FTC
probe and didn't immediately respond to a request for comment.
The FTC enforces U.S. antitrust laws along with the Justice
Department and states attorneys general. Those entities are also
investigating whether large tech firms are abusing their market
power. Facebook and Alphabet Inc., owner of Google, are the subject
of both state and DOJ probes, according to the companies and
regulators' public statements.
The companies have said they are cooperating with investigators
and that they acquired their market positions legally -- by making
products benefiting consumers.
Mr. Simons, speaking at an American Bar Association event in
Washington, didn't discuss the details of any particular
investigation. He said the agency's new technology enforcement
division is looking at tech firms' conduct as well as reviewing
whether previous tech mergers and acquisitions, either individual
mergers or a string of smaller deals, harmed competition in
violation of U.S. law.
He also said the agency is considering whether mergers were
executed as part of "a campaign of exclusionary conduct that
includes exclusionary behavior like exclusive dealings (and)
loyalty programs."
Mr. Simons' remarks followed an appearance by Deputy Attorney
General Jeffrey Rosen, who is a central figure in the Justice
Department's broad antitrust review of online platforms, an
initiative that has created tensions with Mr. Simons and the
FTC.
Mr. Rosen said the DOJ hasn't yet reached any conclusions about
potential issues people have raised about the dominant platforms,
including whether they are stifling innovation and competition from
other would-be rivals in the digital space.
The Justice Department's No. 2 official, however, warned that
antitrust enforcement isn't a "panacea for every problem in the
digital world," and suggested the department would consider other
legal tools at its disposal.
"We will not ignore any harms caused by online platforms that
partially or completely fall outside the antitrust laws," Mr. Rosen
said. "We are keeping in mind other tools in areas such as privacy,
consumer protection and public safety as part of a broader review
of online platforms, to whatever extent warranted."
Brent Kendall contributed to this article.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
November 18, 2019 13:58 ET (18:58 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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