The FTC will allocate resources exclusively towards monitoring competition in the tech industry.
Background: The Federal Trade Commission has extensive remit in monitoring technology markets. Not only does it have antitrust powers; it is also responsible to monitor companies’ privacy practices. The FTC is currently running hearings on ‘Competition and Consumer Protection in the 21st Century’, to ensure it is up to speed with the changes brought about in markets by technology.
Today’s announcement: The FTC’s Bureau of Competition is creating a Technology Task Force, which will draw upon existing staff and expertise to enhance the Bureau’s focus on technology-related sectors of the economy, including markets in which online platforms compete. The task force is modeled on the FTC’s Merger Litigation Task Force, launched in 2002.
What can we expect? The team will include 17 staff attorneys with expertise in markets for online advertising, social networking, mobile operating systems and apps, and platform businesses. In addition to examining industry practices and conducting law enforcement investigations, the Technology Task Force will, among other things, coordinate with staff throughout the FTC on technology-related matters, including prospective and previous mergers. Until now, US regulators have been far less active than their European counterparts in bringing competition cases against large tech companies such as Google and Facebook; the creation of this task force could be the first step in a new direction.
