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About The daily Astorian. (Astoria, Or.) 1961-current | View Entire Issue (Sept. 7, 2019)
B5 THE ASTORIAN • SATURDAY, SEPTEMBER 7, 2019 As feds loom, states hit Facebook, Google with new probes By MARCY GORDON and MATT O’BRIEN Associated Press WASHINGTON — Two groups of states are target- ing Facebook and Google in separate antitrust probes, widening the scrutiny of Big Tech beyond sweeping federal and congressional investigations into their mar- ket dominance. Facebook and Google are two of the world’s larg- est and most ubiquitous tech companies. The billions who use their services for making social media posts, upload- ing videos or searching ads are targeted by the tech com- panies for their personal data — a prized asset that enhances the companies’ power. Regulators are exam- ining whether the compa- nies have used their market power to crimp competition, potentially raising prices and hurting consumers. Dissatisfaction with what federal authorities have done so far may be pushing some states to band together to run their own investiga- tions, possibly eyeing more aggressive sanctions. The Federal Trade Commission’s recent $5 billion fi ne against Facebook over privacy vio- lations, for example, was criticized by consumer advo- cates and a number of public offi cials as being too lenient. “The states see it as part of their role to fi ll a vac- uum,” said Jay Himes, an antitrust lawyer in New York. Himes, a former head of the antitrust bureau in the New York attorney general’s offi ce, worked on the states’ antitrust case against Micro- soft about 20 years ago. Marcio Jose Sanchez/AP Photo Google’s headquarters in California. Noah Berger/AP Photo A conference worker passes a demo booth at Facebook’s annual F8 developer conference in California in 2017. New York Attorney Gen- eral Letitia James, a Demo- crat, said Friday her probe will look into Facebook’s dominance and any resulting anticompetitive conduct. A separate group of state attorneys general is announc- ing Monday in Washington the launch of an investiga- tion into “whether large tech companies have engaged in anticompetitive behav- ior that stifl ed competition, restricted access and harmed consumers,” an advisory from Texas Attorney Gen- eral Ken Paxton said Friday. The Washington Post and The Wall Street Journal, cit- ing sources they didn’t iden- tify, have reported that target will be Google. Both groups of state attor- neys general include Demo- crats and Republicans. Join- ing James in the Facebook investigation are the attor- neys general of Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Ten- nessee and the District of Columbia. With some 2.4 billion users around the globe and a huge social media presence, Facebook has sparked out- rage with a series of privacy scandals and its use by Rus- sian operatives in the 2016 presidential campaign. “Even the largest social media platform in the world must follow the law and respect consumers,” James said. She said the probe would seek to determine if Face- book endangered consumer data, reduced the qual- ity of consumer choices or increased the price of advertising. The U.S. Justice Depart- ment opened a sweeping antitrust investigation of big tech companies this sum- mer, looking at whether their online platforms have hurt competition, sup- pressed innovation or oth- erwise harmed consumers. The Federal Trade Commis- sion has been conducting its own competition probe of Big Tech, as has the House Judiciary subcommittee on antitrust. The lawmaker leading that investigation, U.S. Rep. David Cicilline, D-R.I., said Friday the states’ probe of Facebook is “completely appropriate.” “Facebook has proven time and time again that it cannot be trusted to regulate itself,” Cicilline said. The states have the power to make big changes to the tech industry — especially if enough of them band together, said Matt Stoller, a fellow at the Open Mar- kets Institute, a group that advocates for the breakup of corporate monopolies. Though states have limited jurisdictions, he said, once a few of the bigger states get involved, changes can come that can affect most of the country. “You really have to break their power, and I think the states are more likely to do that than anyone else,” Stoller said in an interview. Facebook said it plans to “work constructively” with the state attorneys gen- eral and welcomes a con- versation with policymakers about competition. “People have multiple choices for every one of the services we provide,” said Will Castleberry, a vice pres- ident of state and local pol- icy. “We understand that if we stop innovating, people can easily leave our plat- form. This underscores the competition we face, not only in the U.S. but around the globe.” Google issued a state- ment that didn’t comment directly on the antitrust con- cerns but said its services “help people every day, cre- ate more choice for consum- ers, and support thousands of jobs and small businesses across the country.” “We continue to work constructively with regu- lators, including attorneys general, in answering ques- tions about our business and the dynamic technology sec- tor,” Google’s statement said. Big Tech won’t be an easy target. Current interpre- tations of U.S. law against monopolies don’t obviously apply to companies offering inexpensive goods or free online services. Traditional antitrust law focuses on dominant busi- nesses that harm consum- ers, typically through prac- tices that raise prices for consumers. But many tech companies offer free prod- ucts that are paid for by a largely invisible trade in the personal data gleaned from those services. Others like Amazon offer consistently low prices on a wide array of merchandise. AP writer Matt O’Brien reported from Providence, Rhode Island. Associated Press writers Kiley Arm- strong and Tali Arbel in New York and Rachel Lerman in San Francisco contributed to this report. Classifieds GARAGE SALE SEASON IS HERE! SELL YOUR VEHICLE HERE! Searching for Employees? If it Drives or Floats... PLACE YOUR JOB POSTING HERE ONLY $ 25 ys for 3 da Call 800 . 781 . 3214 to ADVERTISE TODAY! 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