Google, Others Now Draw State Scrutiny -- WSJ
June 08 2019 - 3:02AM
Dow Jones News
By John D. McKinnon
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (June 8, 2019).
WASHINGTON -- State attorneys general are preparing for their
own investigations into big tech platforms including Google and
Facebook, based on concerns that largely mirror those driving
probes by the Justice Department, the Federal Trade Commission and
Congress.
That is adding to regulatory headaches for the tech giants, and
potentially adding to the pressure on federal officials.
The U.S. Justice Department and the Federal Trade Commission
recently agreed on a plan that would clear the way to examining
potential antitrust issues with several big U.S. tech firms. Now
the Justice Department has authority over Alphabet Inc.'s Google
unit and Apple Inc., while the FTC will have oversight of Facebook
Inc. and Amazon.com Inc.
Google and Facebook are closest to being in the agencies'
investigative crosshairs, according to people familiar with the
matters.
In recent interviews, several state attorneys general and aides
said a core group of AGs has been discussing how to address
antitrust-related concerns around big tech companies for some
months. One official estimated the number of attorneys general who
are involved at between 12 and 20.
While the federal government still carries the most clout,
"meaningful litigation to check companies over the last 30 years
seems to be starting out more and more from the state AGs," said
Jeff Landry, the Louisiana attorney general, in a recent interview.
"Now it's up to the AGs and DOJ and FTC...to solve" the
problems.
Amazon declined to comment. Google, Facebook and Apple didn't
immediately comment. Big tech companies generally have said they
believe they are operating in highly competitive and dynamic
markets.
Several of the attorneys general or their top aides will meet
next week with FTC officials at a workshop in Omaha, Neb., on state
and federal competition and consumer-protection issues.
Mr. Landry is scheduled to appear on one panel, along with
Nebraska Attorney General Doug Peterson and Tennessee Attorney
General Herbert Slatery III.
Aides from Iowa, Utah, Virginia and Washington state also are
likely to speak on antitrust issues.
No decisions are likely, although the meeting gives attorneys
general the chance to share more viewpoints and possible
strategies.
Many of the state AGs who are engaging in the effort are
Republicans like Mr. Landry. But some Democrats also have been
involved.
"What you're seeing is more AGs of both parties trying to pursue
this issue," said Jim Hood, the Mississippi attorney general, who
is a Democrat, in a recent interview. Antitrust concerns about big
tech companies are "up there with the Standard Oil trust during
that era, the robber barons in the 1800s -- we're looking at that
kind of political power."
He added that he suspects the issue will end up in
litigation.
State attorneys general enforce state antitrust and
consumer-protection laws that often mirror federal rules. They have
emerged in recent years as an important front line in taking on
large and complicated cases. In the government's 1998 antitrust
case against Microsoft Corp., for example, a group of state
attorneys general joined the Justice Department in filing its
monopolization complaint.
But the discussions have been wide-ranging and no formal
complaint appears imminent. Much of the focus is on broad issues
such as the companies' data-fueled growth, their dominance of
certain areas such as online advertising, and the difficulty of
entering some markets for would-be rivals. Those are concerns that
federal regulators also are considering.
"Data ...is really the new oil," said Mark Brnovich, the Arizona
attorney general, in a recent interview. "What's happening is the
giants are growing more and more powerful. The more data they
gather... the better and smarter their software becomes, and that
leads to increasing their lead and their dominance."
That also could be leading to more manipulation of consumers and
limiting of their choices, particularly in commercial settings but
also in information, he added.
But some Republicans also have focused intently on supposed
suppression of conservative viewpoints as a potential basis for an
antitrust suit, which may drive some Democrats away.
The tech companies generally have rejected the idea that they
are manipulating information or suppressing conservative
speech.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
June 08, 2019 02:47 ET (06:47 GMT)
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