Washington, D.C. - The Justice Department and the Federal Trade Commission (FTC) on Wednesday released a joint statement outlining their antitrust enforcement priorities for the tech industry. The statement specifically mentions concerns about "data collection and use," "self-preferencing," and "anticompetitive mergers and acquisitions."
The statement comes as the Biden administration has been increasingly critical of the power of Big Tech companies. In a speech last month, President Biden called for a "new era of antitrust enforcement" to address the "monopoly power" of these companies.
3 Areas of Focus for Antitrust Enforcement in the Tech Industry
The joint statement from the Justice Department and the FTC identifies three areas of focus for their antitrust enforcement efforts in the tech industry:
1. Data collection and use:
- The statement expresses concern that tech companies are collecting too much data about consumers and using that data to stifle competition. For example, the statement notes that tech companies may use their data to target consumers with ads, or to rank their products higher in search results. This could give tech companies an unfair advantage over their competitors, and make it difficult for new companies to enter the market.
- The statement also notes that tech companies may use their data to create "walled gardens" that make it difficult for consumers to switch to competing products and services. This could lead to higher prices or lower quality products and services for consumers.
- Additionally, the statement notes that tech companies may use their data to discriminate against certain consumers or groups of consumers. This could violate anti-discrimination laws and harm consumers' ability to access essential services.
2. Self-preferencing:
- The statement also expresses concern that tech companies are giving their own products and services an unfair advantage over those of their competitors. For example, the statement notes that tech companies may give their own products and services preferential treatment in their search results or on their platforms. This could make it more difficult for consumers to find and use competing products and services, and could lead to higher prices or lower quality products or services.
- The statement also notes that tech companies may use their market power to force their customers to use their own products and services. This could stifle innovation and make it difficult for new companies to enter the market.
- Additionally, the statement notes that tech companies may use their self-preferencing practices to harm consumers' privacy. For example, a tech company may use its market power to require consumers to agree to share their data in order to use its products or services.
3. Anticompetitive mergers and acquisitions:
- The statement also expresses concern that tech companies are using mergers and acquisitions to stifle competition. For example, the statement notes that tech companies may acquire smaller competitors in order to eliminate them as potential rivals. This could reduce the number of choices available to consumers, and lead to higher prices or lower quality products or services.
- The statement also notes that tech companies may use their market power to acquire companies that are developing new technologies that could challenge their dominance. This could stifle innovation and prevent consumers from benefiting from new products and services.
- Additionally, the statement notes that tech companies may use their market power to acquire companies that are critical infrastructure, such as telecommunications networks. This could give tech companies control over essential services and harm competition.
The joint statement from the Justice Department and the FTC is a significant development in the Biden administration's efforts to rein in Big Tech. The statement makes clear that the administration is serious about its antitrust enforcement efforts in the tech industry, and it is likely to lead to increased scrutiny of tech companies' business practices.
The statement has been met with mixed reactions from the tech industry. Some companies have welcomed the increased scrutiny, arguing that it is necessary to ensure that the tech industry remains competitive. Others have expressed concern that the increased scrutiny could stifle innovation.
It remains to be seen how the Justice Department and the FTC will implement their new antitrust enforcement priorities. However, the statement is a clear sign that the Biden administration is serious about taking on Big Tech.
The statement also comes at a time when the tech industry is facing increasing scrutiny from regulators around the world. In recent months, the European Commission has opened antitrust investigations into Google, Amazon, and Apple. And the U.K. government has announced plans to create a new regulator to oversee tech companies.
The joint statement from the Justice Department and the FTC is a sign that the U.S. government is also taking a more aggressive approach to antitrust enforcement in the tech industry. It remains to be seen how effective these efforts will be, but they are a clear indication that the tech industry is under increasing pressure to change its ways.