The US Justice Department said on July 23 that it will open a large-scale investigation into major technology firms to determine whether they are engaged in anticompetitive behaviors.
Reuters said that this is the most powerful sign that the Trump administration is strengthening the monitoring of big technology firms or collectively called Big Tech. The investigation explores how “top online platforms achieve market power and is related to reduced competition practices, barriers to innovation or something that harms users.”
The US Department of Justice did not specify the business name but referred to “search, social networks and some online retail services”. These are the areas of activity of “four pillars” Alphabet (parent company Google), Amazon, Facebook and Apple.
Senator Richard Bumenthal of the Democratic Party said the Justice Department “must be bold and not afraid to stop Big Tech from abusing monopoly power.”
According to the Ministry of Justice, the investigation aims to ensure that Americans have access to the free market, where companies compete healthily to provide services that users want.
MPs of both parties expressed concern about the size of the largest technology firms as well as their market power. Presidential candidate Elizabeth Warren once called for “disbanding” companies like Amazon, Apple, Google and Facebook as well as overturning past M&A deals.
In 2018, Congress organized a series of hearings to consider Big Tech’s role in replacing or swallowing existing businesses. Senator David Cicilline said venture capitalists and startups fear the “dead zone” around the technology’s “four pillars”, preventing new startups from entering the market with bright products and services. create.
Last month, Apple CEO Tim Cook told CBS News that the investigation was fair but said “apple flaw” did not dominate any market if it looked at market share. Adam Cohen, director of Google’s economic policy, said the company had “created competition in many areas, and competitive pressure often led to rival anxiety.”
Big Tech faces a wave of protests in the US and globally, largely due to concerns among competitors, lawmakers, consumer organizations. President Trump called for more scrutiny than social networking companies and Google, accusing them of prejudice against the Republican Party.