U.S. Justice Department investigation
The U.S. Justice Department has announced an investigation into large U.S. technology companies, examining whether they are unfairly restricting and stifling competition.
The investigation will most likely look at the dominating power of tech’ giants such as: Google, Facebook, Apple and Amazon.
Too big and too powerful
It has been suggested practices that might have reduced competition, stifled innovative new start-ups, and harmed consumers are to be scrutinized. Facebook’s recent digital currency announcement is one area most likely to be questioned.
It is quite possible, in the long term, that the investigation could lead to some of these big companies being broken up. In the short term this is less likely as it will take time to process.
Good for the consumer?
Overall this should be good for the consumer, and probably not so good for the investor. But, having said that, nothing so far has stopped the share price of these tech’ giants marching ever higher.
They wield so much power and that will be difficult to challenge. The question is, why has it taken so long for these global giants to be reined in?