The Federal Trade Commission (FTC) announced a probe into acquisitions by major tech firms on Wednesday. It will look into Apple, Microsoft, Facebook, Google, and its parent firm Alphabet.
FTC Looking Into Big Techs Small Acquisitions
FTC Chairman Joe Simons explained:
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. This will help us continue to keep tech markets open and competitive, for the benefit of consumers.
The FTC aims to better understand transactions undertaken by large tech companies, particularly smaller ones that don’t currently need to be reported. It wants to know if they are making acquisitions that are anticompetitive, such as buying newer firms and potential competitors. The proposal to begin the probe was backed unanimously 5-0 by those on the commission.