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Facebook Faces F.T.C. Scrutiny as Antitrust Focus Turns to Big Tech Facebook Is Seeing F.T.C. Scrutiny as Antitrust Focus Turns to Big Tech
(32 minutes later)
WASHINGTON — Facebook could face more intense government scrutiny, as regulators have decided that the Federal Trade Commission will oversee antitrust complaints about the company, according to two people with knowledge of the matter. WASHINGTON — Facebook is confronting another wave of government scrutiny, as regulators have decided that the Federal Trade Commission will oversee antitrust complaints about the company, according to two people with knowledge of the matter.
The decision does not mean the agency has opened an official investigation. But the move is significant because it illustrates the government’s increased focus on the world’s biggest tech giants and the desire to increase oversight of how the companies may be harming competition and consumers. The F.T.C. is approaching the end of an investigation into Facebook’s handling of data privacy, and the company is expected to pay up to $5 billion in a settlement. Any look into antitrust issues would be separate from that inquiry.
The Justice Department and the F.T.C. have also divided up antitrust enforcement duties for Google and Amazon. Regulators appear interested in Google’s advertising and search business. Some consumer groups and vendors argue that Amazon blunts new competition. The antitrust scrutiny is part of a broader effort by the Justice Department and the F.T.C. to divide up antitrust enforcement duties for many of the industry’s biggest companies, including Google and Amazon. Regulators appear interested in Google’s advertising and search business. Some consumer groups and vendors argue that Amazon blunts competition.
The decisions do not mean that the agencies have opened official investigations. But the moves illustrate the growing discomfort by American regulators and some politicians with the enormous power that a handful of Silicon Valley’s businesses wield.
Regulators have struggled to keep pace with the growth of technology companies, which dominate large swaths of the economy. Facebook is at the center of millions of people’s online social lives. Amazon is the de facto force in online retailing. Google is the starting point for many people searching online.
Competitors and academics have raised complaints about the biggest tech companies for years, but have gotten little for their efforts in the United States. Now, though, the debate is moving into politics.
The two agencies began negotiations a few weeks ago over the companies and issues related to competition in the tech sector. It does not appear that the agencies have launched official investigations into the companies at this time. But with the agencies’ new assignments to explore competition in search, e-commerce and social networking, the move is the most aggressive step so far by American regulators to scrutinize the rapid growth of Facebook, Amazon and Google.
The F.T.C. and Justice Department declined to comment Monday, as did Facebook.
The F.T.C. is close to the completion of a privacy investigation into Google that has lasted more than year. The agency also approved Facebook’s acquisitions of the picture-sharing site Instagram in 2012, and the messaging app WhatsApp in 2014. The F.T.C.’s antitrust authorities also have experience with Amazon, with the agency’s approval of the e-commerce giant’s purchase of WholeFoods in 2017.
[Read more about the storm brewing over big tech.][Read more about the storm brewing over big tech.]
Shares of Facebook were down more than 7 percent on Monday afternoon. Google and Amazon were also sharply lower.Shares of Facebook were down more than 7 percent on Monday afternoon. Google and Amazon were also sharply lower.