FTC chairman Joe Simons. Perhaps, perhaps, an outcome of an FTC task force questioning whether tech giants violated anticomprehensive laws could force them to fall into smaller companies, according to reports in Reuters and Bloomberg.
Facebook likes probably not quake in their bootsies yet. Simons – who probably tied his hands to the ongoing status of his agency's extensive review of the tech sector, but whose agency has been accused of coddling Facebook in a recent privacy settlement – is over more or less recognize that it is within his power to pursue "corporate breakups." 19 If you have it, do it, "Simons told Bloomberg." It's not perfect because it's so messy. But if you have to do it. ”
As Bloomberg noted, the strength of the FTC's role seems to be in favor of whether Facebook has acquired its current form as a spanning the globe by buying subsidiaries such as Instagram and WhatsApp for its -a goal of eliminating competition. The Department of Justice has launched its own antitrust investigation of the tech sector that seems to overlap with the FTC, though Simons offered some details about how agencies are coordinating.
"It is possible for sure we can investigate the same company at the same time but for different behaviors," Simons told Bloomberg.
However, he told Bloomberg that the Facebook takeover of Facebook was a particularly open question to today's FTC:
Simons didn't confirm the details of the Facebook investigation beyond what the company disclosed. in July, when it was said that the FTC had initiated an extensive investigation into several lines of business – social media, digital advertising and mobile applications. Any inquiry into past acquisitions will focus on what would happen to those companies if Facebook hadn't bought them, Simons said.
"There's a question about why Instagram is so successful," Simons says. "Is it the fact that the seed already exists and is it going to grow whatever it is or the seed has grown since Facebook got it?"
The integration of the tech sector in recent years and growing hostility to companies like Amazon, Apple, Facebook, and Google in DC seems to be raising issues of scale and competition, and both leading Democrats presidential candidates such as Elizabeth Warren and the Donald Trump administration have encouraged regulators to step in. (Trump's case, anger is clearly related to the conspiracy and baseless accusations that tech companies are secretly supporting Democrats rather than doing it … any other coherent motive.) But there is reason to be skeptical whether this is all talk or the FTC and DOJ investigation will actually result in breakups anytime soon. the anion and antitrust guards do nothing to prevent it – and the pendulum slowly recovers in the other direction. In June, New Street Research analyst Blair Levin told Information that "any concrete action and coherent thinking on these matters" would likely take at least a year and a half to write, which means next presidential administration.