Beyond Antitrust, US Justice Department Expands Its Review Into Big Tech Companies
U.S. Deputy Attorney General Jeffrey Rosen made clear Monday that the Department of Justice is continuing its serious examination of antitrust issues in the online technology industry, and that it won't hesitate to expand the review into other areas.
November 18, 2019 at 04:20 PM
4 minute read
The original version of this story was published on Corporate Counsel
U.S. Deputy Attorney General Jeffrey Rosen made clear Monday that the Department of Justice is continuing its serious examination of antitrust issues in the online technology industry, and that it won't hesitate to expand the review into other areas.
In remarks prepared for delivery to the American Bar Association's 2019 Antitrust Fall Forum in Washington, D.C., Rosen also said, "We do not view antitrust law as a panacea for every problem in the digital world. Indeed, we will not ignore any harms caused by online platforms that partially or completely fall outside the antitrust laws. We are keeping in mind other tools in areas such as privacy, consumer protection, and public safety as part of a broader review of online platforms."
Rosen said playing a key role in both the antitrust and the broader technology review is Ryan Shores, who joined Rosen's office last month as senior adviser for technology industries. Shores, formerly a partner with Shearman & Sterling, previously clerked for the late Chief Justice William Rehnquist.
While Rosen did not name any tech companies under review—nor did a July 23 press release announcing the review—it has been generally reported that Amazon.com Inc., Apple Inc., Facebook Inc. and Google LLC are under a Justice Department microscope.
When contacted by Corporate Counsel on Monday, Amazon's legal department through a spokesperson declined comment on Rosen's speech. Google and Facebook acknowledged receiving messages but didn't respond to the question. Apple did not respond to the message.
The general counsel involved are David Zapolsky at Amazon, Katherine Adams at Apple, Kent Walker at Google and the newest member of the group, Jennifer Newstead at Facebook. Newstead just joined Facebook after serving as a President Donald Trump-appointed legal adviser to the U.S. State Department.
In his speech, Rosen said, "The human impact of these technologies cannot be overstated. Ordinary Americans rely on them in their day-to-day lives."
He compared the industry to the early 20th century rise of major broadcast media, and the mid-20th century economic consolidation in the film industry. Both of which drew antitrust attention.
"Today, in the 21st century, we marvel at the world wide web and mobile technology, but we once again face questions about the consolidation of power by some companies that provide platforms for information exchange and related technologies," Rosen said.
He said, "In a relatively short amount of time, they have disrupted industries, amassed substantial economic power, and developed business models that monetize potentially sensitive consumer information that they control."
He referred to new allegations that platform operators are preventing disruption and preserving dominance. "It is therefore unsurprising that concerns about the leading online platforms have been widely expressed, including by industry participants who have direct insight into the competitive dynamics."
Rosen said many experts see "the structural features of today's major technology industries … as facilitating perpetual dominance."
He stressed that the department was being fair and open-minded in its review.
"We have not reached any ultimate conclusions yet," he said. "I want to underscore that. We will follow the evidence and, if it is warranted, we will enforce the law and seek appropriate remedies."
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