The Guardian (USA)

US states to launch antitrust and privacy inquiries into Facebook and Google

- Dominic Rushe

Dozens of US states are set to launch antitrust and privacy investigat­ions into Facebook and Google as scrutiny of the big tech firms increases in the US.

The investigat­ion into Alphabet’s Google unit will examine the search giant’s effect on the digital advertisin­g market and its impact on consumers. In a separate but overlappin­g investigat­ion the states’ leading law enforcers will investigat­e Facebook’s privacy record and its advertisin­g model.

The news, first reported by the Wall Street Journal, was confirmed on Friday morning by the New York attorney general, Letitia James. “Even the largest social media platform in the world must follow the law and respect consumers,” said James in a statement.

She said the bipartisan coalition of attorneys general was investigat­ing whether Facebook has stifled competitio­n and put users at risk.

The inquiry includes the attorneys general of Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia. James said the investigat­ion “focuses on Facebook’s dominance in the industry and the potential anticompet­itive conduct stemming from that dominance”.

“We will use every investigat­ive tool at our disposal to determine whether Facebook’s actions may have endangered consumer data, reduced the quality of consumers’ choices or increased the price of advertisin­g,” James said.

The investigat­ions come as the tech giants have come under increasing scrutiny in the US. Facebook recently paid $5bn to settle Federal Trade Commission (FTC) allegation­s that it repeatedly deceived users about their ability to keep their personal informatio­n private.

That fine came after a year-long investigat­ion into the Cambridge Analytica data breach, first reported by the Observer.

The fine, however, was dismissed by many politician­s as insignific­ant for a company that had revenues of $55bn in 2018. “Rather than accepting this settlement, I believe we should have initiated litigation against Facebook and its CEO, Mark Zuckerberg,” said Rebecca Kelly Slaughter, the Democratic FTC commission­er.

European regulators have until recently been far more aggressive in their policing of the tech giants than their US counterpar­ts. Facebook is already the subject of an antitrust investigat­ion in Europe, where regulators are also weighing sanctions on the company for breaking the region’s strict privacy laws.

In Britain a parliament­ary report labelled Facebook and its executives as “digital gangsters” earlier this year after an investigat­ion found the company deliberate­ly broke privacy and competitio­n law.

But the tech companies’ cozier relationsh­ip with Washington is fraying as cross-party support for more regulation and scrutiny has mounted. Federal privacy laws are being considered in the US and the companies have attracted the ire of Donald Trump who has called them “dishonest” and “crooked” and said that “something is going to be done”. More details soon …

 ??  ?? In a separate investigat­ion, the states’ leading law enforcers will investigat­e Facebook’s privacy record and its advertisin­g model. Photograph: Niall Carson/PA
In a separate investigat­ion, the states’ leading law enforcers will investigat­e Facebook’s privacy record and its advertisin­g model. Photograph: Niall Carson/PA

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