The big tech companies that dominate internet search, online shopping and social media will come under more scrutiny with the Justice Department reportedly broadening a government investigation into the sector.
What Happened
The Wall Street Journal reported Tuesday afternoon that the Department of Justice will examine the industry to determine whether the big tech companies are illegally stifling competition. Among the companies likely to be part of the agency’s probe are Facebook Inc. FB, Amazon.com Inc. AMZN, Apple Inc. AAPL and Alphabet Inc GOOGL’s Google.
What It Means
The companies already face extensive regulatory interest and the Journal reported the DOJ review would go beyond already-known looks by the DOJ and the Federal Trade Commission into the sector’s business practices. The new review could mean some companies could face antitrust investigations from both the Justice Department and the FTC, which earlier this year created a task force to study competition in the industry.
In addition to the growth and size of the companies, the agency has expressed interest in how the companies might take advantage of the data created by their large user networks, the report said.
Price Action
Shares of Apple, Facebook, Amazon.com and Google were all trading down in the after-hours session with Facebook seeing the biggest drop, down 1.66%.
Related Links:
Facebook, FTC To Settle Privacy Charges For $5B
Alphabet's Google Braces For Antitrust Investigation From The Justice Department
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