House Judiciary opens antitrust probe of tech giants

The House Judiciary Committee is launching a bipartisan investigation into whether large tech companies are suppressing competition.

The panel’s Democratic and Republican leaders announced the investigation on Monday, which will address the question of whether Congress should pass more stringent antitrust laws to rein in Silicon Valley.

“The open internet has delivered enormous benefits to Americans, including a surge of economic opportunity, massive investment, and new pathways for education online,” Judiciary Chairman Jerrold Nadler (D-N.Y.) said in a statement. “But there is growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications.

“Given the growing tide of concentration and consolidation across our economy, it is vital that we investigate the current state of competition in digital markets and the health of the antitrust laws,” he added.

Why it’s big: The investigation will be the first Congress has ever conducted into how Silicon Valley’s dominant platforms wield their vast market power. The probe will include a series of hearings and will give lawmakers an opportunity to seek information from the companies about their practices through requests and subpoenas.

The committee said that the probe would focus on three areas: documenting where competition is lacking in digital markets, exploring whether large companies are suppressing competition and determining whether Congress and regulators need to do more to address Big Tech’s dominance.

Troubles mount for tech: The news comes as regulators are also reportedly setting themselves up for a broad investigation into Silicon Valley. In recent days, media outlets have reported that the Department of Justice and the Federal Trade Commission agreed to divvy up the largest tech companies into their respective jurisdictions. The reports sent tech stocks tumbling on Monday.