The US government is gearing up to investigate whether Amazon.com Inc, Apple Inc, Facebook Inc and Alphabet Inc’s Google misuse their massive market power, sources told reporters on Monday, setting up what could be an unprecedented, wide-ranging probe of some of the world’s largest companies.
The US Federal Trade Commission (FTC) and the Department of Justice, which enforce antitrust laws in the US, have divided oversight over the four companies, two sources said, with Amazon and Facebook under the watch of the FTC, and Apple and Google under the department.
With jurisdiction established, the next step is for the two federal agencies to decide if they want to open formal investigations.
Results are not likely to be quick. A previous FTC probe of Google took more than two years.
Shares of Facebook fell 7.5 percent on Monday while Alphabet shed more than 6 percent. Amazon shares fell 4.6 percent and Apple dipped 1 percent.
The department and FTC generally do not discuss investigations.
US President Donald Trump has called for closer scrutiny of social media companies and Google, accusing them of suppressing conservative voices online, without presenting any evidence.
Leading lawmakers on both sides of the aisle welcomed potential investigations of big tech firms.
US Senate Judiciary Committee Chairman Lindsey Graham, a Republican, said that the business model of companies like Google and Facebook needs to be scrutinized.
“It’s got so much power, and so unregulated,” he said.
Another Republican, US Senator Marsha Blackburn, said the panel would do what she called a “deeper dive” into big tech companies.
US Senator Richard Blumenthal, a Democrat who said on Monday that US enforcers have to do more than wring their hands about the companies’ clout, also weighed in.
“Their predatory power grabs demand strict & stiff investigation & antitrust action,” the senator wrote on Twitter.
Separately, the US House of Representatives Committee of the Judiciary opened its own investigation into competition in digital markets, with both Republicans and Democrats expressing concern about the power exercised by tech giants.
People briefed on the matter say neither the Justice Department nor the FTC have contacted Google or Amazon about any probes, and that company executives are unaware of what issues regulators are reviewing.
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