US DOJ Opens Probe of Online Platforms Over Competition

The U.S. Justice Department said it’s investigating whether dominant technology companies are thwarting competition in their markets, according to Bloomberg. The department’s antitrust division will look at concerns that consumers, businesses and entrepreneurs have expressed about search, social media, and online retail, according to a statement that didn’t name any companies.

“Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands,“ said Makan Delrahim, the head of the department’s antitrust division. “The department’s antitrust review will explore these important issues.“

The announcement marks the latest sign of the escalating scrutiny facing tech companies in Washington from lawmakers and antitrust enforcers. The giants of the industry are under fire over massive collection of user data, failing to police content on their platforms, and claims that they are harming competition and reducing choices for consumers.

President Donald Trump has railed against many of the biggest names in the industry for silencing conservative viewpoints. Earlier this month, he said he’d summon social media companies to discuss political bias on their platforms. Last week, executives from the four companies were grilled by the House antitrust panel, which is investigating whether dominant companies are thwarting competition and harming innovation.

The Justice Department move, first reported by the Wall Street Journal, comes after the antitrust division and the FTC took early steps toward investigating four of the biggest tech companies, with the Justice Department taking oversight of Google and Apple and the FTC getting Facebook and Amazon. The Justice Department’s move followed the FTC’s decision in February to form a tech task force to examine conduct by companies and past deals in the industry.