The FTC Is Expanding Its Investigation On Big Tech

Matty-Sways

The FTC is looking at small acquisitions made by big tech firms to investigate anti-competitive practices.

More specifically, the FTC asked for all information from Amazon, Apple, Facebook, Microsoft and Google relating to acquisitions of small and new firms that occurred during the past ten years.

The FTC has stated that there hasn’t been an exact agenda set towards how this data will be evaluated but that it might affect the value threshold set by the FTC of when acquisitions should be regulated. Currently, when an acquisition is over $94 million it is subject to antitrust review.

“This initiative will enable the commission to take a closer look at acquisitions in this important sector, and also to evaluate whether the federal agencies are getting adequate notice of transactions that might harm competition,” FTC Chairman Joe Simons said.

The argument behind looking at these acquisitions is that new firms never actually get the chance to be competitive with major tech firms because they are often acquired in their nascence. However, big tech argues that a lot of startups are founded with the hope of being acquired for a handsome sum. The motivation to be bought out for millions is being argued as enough motivation to pursue innovative practices amongst new actors in the industry.

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