Big technology companies such as Facebook, Amazon, Google and Apple are on the cusp of a new era of regulatory oversight in the U.S., after years of being penalized in Europe for anticompetitive practices. The clamor from U.S. regulators has gotten louder recently, with calls for investigations into big tech’s antitrust activities, as well as the implications of their data gathering on privacy and the democratic process.
The calls for stepped up regulations on big tech come at a time of increasing clout for their platforms, whose oversight doesn’t fall neatly under existing U.S. laws. Wharton experts find these new business models also necessitate a reassessment of antitrust law.
In this, the U.S. seems to be following Europe. Google is appealing its latest fine of $1.7 billion by European regulators for alleged anticompetitive practices in the online advertising market.
The case against Google is “very strong,” says Eric K. Clemons, Wharton professor of operations, information and decisions, noting that the European Union was penalizing what it saw as an abuse of platform power.
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