House Judiciary Committee launches 'top-to-bottom' antitrust probe of big tech

[Edge-]

https://www.cnn.com/2019/06/03/tech/...obe/index.html

The House Judiciary committee said Monday it is launching a "top-to-bottom" antitrust investigation of the tech industry, including Amazon (AMZN), Apple (AAPL), Facebook (FB) and Google (GOOG), deepening a crisis for Silicon Valley's largest players as they face mounting scrutiny in Washington over their power and influence.

The Democratic-led investigation comes as the Justice Department and the Federal Trade Commission are taking their first steps toward a potential probe of their own into Google, according to three people familiar with the matter. Regulators have negotiated to divide oversight of the tech industry between the two agencies in recent weeks, these people said. The two agencies have also reportedly split up oversight of Amazon, Apple and Facebook.

Long the darling of investors and politicians, the tech industry has come under intense pressure amid an array of privacy missteps, disinformation scandals and allegations of anti-competitive behavior. Industry critics such as Massachusetts Democratic Sen. Elizabeth Warren, a presidential candidate, have called for tough new regulations and demanded that the companies be broken up.

The industry probe will be wide-ranging. Rhode Island Democratic Rep. David Cicilline, who heads the panel's subcommittee on antitrust and is leading the investigation, said it is aimed less at specific companies than at the "tremendous concentration of market power" held by Silicon Valley's most dominant platforms.

Committee officials have notified Amazon, Apple, Google and Facebook of the coming investigation. Cicilline said he wan
ts to hear from senior tech executives, and that he won't hesitate to issue subpoenas to companies that fail to cooperate.

The investigation is also partly a shot at the antitrust agencies, which he said have been too slow to act.

"I don't have a lot of confidence that these agencies will get the job done," Cicilline said.

While Congress lacks the power to break up big tech companies or levy fines, it has the ability to compel testimony from executives, gather documents and force public debate.

The investigation will likely result in a report outlining possible policy recommendations, Ciciline said, and could lead to new legislation in the coming months. According to Ciciline, this is the first time Congress has launched a significant antitrust investigation in decades.

"The open internet has delivered enormous benefits to Americans, including a surge of economic opportunity, massive investment, and new pathways for education online," House Judiciary chairman Jerrold Nadler said. "But there is growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications."

It's interesting seeing Democrats spearhead this rather than Republicans, given that Republicans have repeatedly complained about how conservatives are "censored" on social media sites. They had control of the House for 2 years and retain control of the Senate, but I don't recall them opening up any probes into tech companies.

Given how much money the tech sector gives politicians though, I can't say I'm terribly optimistic that this probe will lead to anything meaningful.

[Machismo]

What's scary, is that this is actually something the Democrats and Republicans may get together on, and try and change. Both sides hate those companies for different reasons, but it does all circle around to them not being able to easily control and manipulate them to further their own ends.

[Elegiac]

https://www.cnn.com/2019/06/03/tech/...obe/index.html



It's interesting seeing Democrats spearhead this rather than Republicans, given that Republicans have repeatedly complained about how conservatives are "censored" on social media sites. They had control of the House for 2 years and retain control of the Senate, but I don't recall them opening up any probes into tech companies.

Given how much money the tech sector gives politicians though, I can't say I'm terribly optimistic that this probe will lead to anything meaningful.

I'm not so sure. We are actually seeing bipartisan opinions regarding the power and influence of the tech sector and social media in particular, and public opinion seems to have shifted against it.

We have a deficit to a make up, and fining the tech sector for their abuses is a politically viable and likely popular way to help mitigate that. So we'll see.

[Kaleredar]

What's scary, is that this is actually something the Democrats and Republicans may get together on, and try and change. Both sides hate those companies for different reasons, but it does all circle around to them not being able to easily control and manipulate them to further their own ends.

I'm hopeful that if nothing else they close the loopholes that these companies use to avoid paying taxes.

[Sormine]

It's interesting seeing Democrats spearhead this rather than Republicans, given that Republicans have repeatedly complained about how conservatives are "censored" on social media sites. They had control of the House for 2 years and retain control of the Senate, but I don't recall them opening up any probes into tech companies.

What are you even talking about? Ted Poe literally grilled that Google CEO that one time because he was being tracked through his phone.

Republicans are the only people brave enough to ask the real questions when it comes to the likes of Tim Apple and their disgusting overreach of corporate power.

[Machismo]

I'm hopeful that if nothing else they close the loopholes that these companies use to avoid paying taxes.

Everyone should pay taxes, that's the only way to actually lower them effectively. Until everyone has skin in the game, then there will always be a large contingent that will push for others to pay more.

[Felya]

In Russia this conflict is called... New Russians (nova ruski) vs Oligarchs... If a peasant ever get to the point of bumping shoulders with oligarchs, they won’t like it.

Just a reminder, this will be judged by people who thinks internet is a bunch of tubes.

- - - Updated - - -

I'm hopeful that if nothing else they close the loopholes that these companies use to avoid paying taxes.

Unless these loopholes somehow targeted only tech companies, I wouldn’t hold my breath. If I had to take a wild guess, this will end with more restrictions on companies like google and more power going to ISPs.

[Draco-Onis]

How is this a bigger concern than too big to fail banks? they literally can tank the global economy again.

[startharp]

How is this a bigger concern than too big to fail banks? they literally can tank the global economy again.

Because the connections between banks and politicians are much stronger than between tech and politicians.

[Felya]

How is this a bigger concern than too big to fail banks? they literally can tank the global economy again.

We elected an oligarch and oligarchs kind of need banks. New money, like tech companies, just infringe on their power. How would you feel if you had a coal mine for generations, having government bend to your will. To then have these pencil neck philistines, carry more gravitas than you? I don’t think you’d like it... remember, in Atlus Shrugged, the oligarchs left and we the poor didn’t know what to do. It didn’t end with one of us resulting in Google or Facebook... remember... you cannot become a billionaire, because government... Google and Facebook is not supposed to happen.

[Mihalik]

I am sceptical of any and all attempts to meddle with tech companies like Facebook or Google (Amazon being a retailer primarily is a different thing) while the ISPs and old media companies own everyone in DC.

This to me feels like Fox News, Time Warner and Co. going after the competitors who aren't in on the shitty oligopoly scheme they are running.

[Wyrt]

Right, because Facebook is the biggest concern. Not like banks or telecoms. No, it's Facebook that's the problem. Seems Facebook didn't buy enough congressmen.

[ati87]

What are you even talking about? Ted Poe literally grilled that Google CEO that one time because he was being tracked through his phone.

Republicans are the only people brave enough to ask the real questions when it comes to the likes of Tim Apple and their disgusting overreach of corporate power.

What's wrong with you?

If your referring to the below video this was just a sad attempt by a old guy trying to look cool and young by showing his Iphone (look grandpa on Facetime) and then asking the CEO of Google an question he could not possibly answer.


You aren't brave when you ask stupid questions, your just stupid which is quit the achievement because I was told that there aren't stupid questions.

[Draco-Onis]

I mean I understand why you all prompt to interpret this as corrupt politicians moving against companies in competition with their donors, there is value in that viewpoint.
But at the same time, do people honestly thing there is no antitrust issue with big tech?

Of course there is but we have given a pass to everyone else this is clearly because they haven't bought enough congress members. Big pharma, telecom, big banks etc. these paid shills have given a pass to people who tanked the global economy, launder money for warlords, poison kids, kill millions with their drugs but no facebook now that's the real threat

[Draco-Onis]

Not all oligopolies violate anti-trust legislation though. You'd need proof of coordinated price fixing or abuse of a position of power in a market to push their products in complementary markets. While it is entirely possible that Big Pharma and Telecom run cartels, it is done behind the scenes. There are several instances however of Apple or Google abusing their market position openly. It is just much easier to make a case against them (which is why the EU has done so).

But cases that could have gone anti trust on the other companies always results in a worthless fine and a wagging of the finger. Big pharma, banks and telecom schemes are so obvious you would have to be a complete moron not to be able to build a case heck you can use all those past cases to do it.

[Acidbaron]

https://www.cnn.com/2019/06/03/tech/...obe/index.html



It's interesting seeing Democrats spearhead this rather than Republicans, given that Republicans have repeatedly complained about how conservatives are "censored" on social media sites. They had control of the House for 2 years and retain control of the Senate, but I don't recall them opening up any probes into tech companies.

Given how much money the tech sector gives politicians though, I can't say I'm terribly optimistic that this probe will lead to anything meaningful.

Republicans would sell their own mothers ass if it gave them a bit of extra money, so it's hardly surprising that what they claim to be outrage over is easily solved by a bit of money their private bank accounts.

I'm surprised you even have effective anti-trust laws.