Facebook, Google Brace for Wave of Antitrust Probes From States

Facebook and Google are facing intensifying scrutiny by state law enforcement officers with authority to impose vast fines and even break up companies that violate antitrust and privacy rules, according to Bloomberg.

New York is leading a coalition of states in a wide-ranging investigation of Facebook and the Texas attorney general said that he’ll announce a separate multi-state probe into anti-competitive behavior by large tech companies. Bloomberg reported that the investigation is targeting Alphabet’s Google.

The developments create fresh problems for Facebook and Google after a wave of criticism by politicians from both parties over their market dominance. And on Sept. 12, the House subcommittee focused on antitrust law will hold a hearing on the impact of data and privacy. The state probes target a wide range of practices that generate billions of dollars in revenue for the world’s biggest social-media company and the largest seller of search-based advertising.

Federal antitrust enforcers have also opened investigations. Google disclosed that it has received from the Justice Department a civil investigative demand, which is akin to a subpoena. The demand seeks information and documents relating to all prior antitrust investigations of the company. “We expect to receive in the future similar investigative demands from state attorneys general,“ the company said in a regulatory filing.

The Justice Department is probing Google’s role in the online advertising market and its search operations. The U.S. Federal Trade Commission is scrutinizing acquisitions by Facebook as part of an early stage antitrust investigation of the social media platform, Bloomberg has reported.