From Business Insider, June 17:
- Facebook
could be impacted the most by an antitrust investigation, Linda Martin,
an analyst at Needham and Co. said in a research note on Monday.
- The Federal Trade Commission and Department of Justice came
to an agreement last month over which big tech companies would fall
under which agencies jurisdiction.
- According to Martin, the broader scope of the FTC's mandate
could be more harmful to Facebook than the DOJ's oversight of Google.
As antitrust investigations become a bigger threat to big tech, Facebook might find itself feeling the worst of them.
Federal agencies staked their claim on big tech investigations last
month when the Federal Trade Commission and the Department of Justice
struck a deal. Facebook and Amazon now fall under the FTC's
jurisdiction, while Apple and Google parent Alphabet are under the watchful eye of the DOJ.
According to Laura Martin, an analyst at Needham, Facebook should be
concerned because the FTC has a much broader scope than the DOJ. That,
in turn, could open the social media giant up to a bigger and more
impactful investigation, if there is one.
"All 5 FTC commissioners are appointed by the White House plus
approved by the Senate, it's objectives (our view) are more politically
aware," Martin said in a research note on Monday.
The FTC's investigation process is also different than the DOJ's. It
includes public hearings and receives considerable press coverage,
whereas the DOJ has a more private and closed process.
The agency's mandate also allows it to investigate different
companies across any industry on the basis of protecting competition and
preventing consumer harm. The DOJ has far less flexibility, according
to its mission statement.
According to Martin, that's good news for Google and Apple....
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