Klobuchar is the Ranking Member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights
WASHINGTON – Today, U.S. Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, and Senators Patrick Leahy (D-VT), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Tammy Baldwin (D-WI), Edward J. Markey (D-MA), and Tina Smith (D-MN) asked for details about possible Federal Trade Commission antitrust investigations into Amazon and Facebook and possible Justice Department antitrust investigations into Google and Apple. In the letters, the senators requested information regarding the existence and scope of the potential investigations.
“Over the years, we have heard numerous complaints about potential anticompetitive conduct by large technology firms, and we have held hearings that have explored these issues,” the senators wrote. “When we saw the recent press reports of potential U.S. investigations into these matters, we were encouraged, but also somewhat troubled that such inquiries were not already well underway. But given the silence of the FTC and the Justice Department, the truth is that we still do not know if these investigations have actually been initiated and neither do the American people.”
In her role as Ranking Member of the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights, Klobuchar has championed efforts to protect consumers, promote competition, and fight consolidation in several industries including the telecommunications, agriculture, and pharmaceutical industries. In April, Klobuchar and Senator Marsha Blackburn (R-TN) sent a letter to the Federal Trade Commission (FTC) to take action in response to concerns regarding potential privacy, data security, and antitrust violations involving online platforms. They also called on the FTC to provide additional transparency into its ongoing investigations to ensure that consumers are protected from harmful conduct relating to digital markets.
Klobuchar has also been an outspoken voice in opposing anticompetitive mergers and has introduced legislation to help prevent them. Klobuchar leads the Merger Enforcement Improvement Act which would update existing law to reflect the current economy and provide agencies with better information post-merger to ensure that merger enforcement is meeting its goals. This bill would modernize antitrust enforcement by improving the agencies’ ability to assess the impact of merger settlements, requiring studies of new issues, adjusting merger filing fees to reflect the 21st century economy, and providing adequate funding for antitrust agencies to meet their obligations to protect American consumers. She also introduced the Consolidation Prevention and Competition Promotion Act to restore the original purpose of the Clayton Antitrust Act to promote competition and protect American consumers. The bill would strengthen the current legal standard to help stop harmful consolidation that may materially lessen competition. It would clarify that a merger could violate the statute if it gives a company “monopsony” power to unfairly lower the prices it pays or wages it offers because of lack of competition among buyers or employers. The bill further strengthens the law to guard against harmful “mega-mergers” and deals that substantially increase market concentration, shifting the burden to the merging companies to prove that their consolidation does not harm competition. She introduced both bills in February.
The full text of the letters can be found below:
The Honorable Joseph Simons
Chairman
Federal Trade Commission
600 Pennsylvania Ave NW
Washington, D.C. 20580
Dear Chairman Simons:
The last several weeks have seen numerous news articles concerning potential federal antitrust investigations into major American technology firms, including possible Federal Trade Commission (FTC) investigations into Amazon.com, Inc. (Amazon) and Facebook, Inc. (Facebook) and Justice Department investigations of Google and Apple. Yet neither agency has provided comment on or corroboration of any of these reports. We write to request that the FTC provide basic disclosures regarding the existence of FTC antitrust investigations into Amazon and Facebook to Congress and the American public.
We have previously highlighted the importance of antitrust enforcement in connection with online digital platforms, which occupy an influential and growing sector of our economy. Amazon, Apple, Facebook and Google touch the daily lives of millions of Americans, connecting friends and family, entertaining us, delivering news and information, and helping us buy and sell the products we need. But the benefits that these companies deliver to consumers do not put them outside of the reach of our antitrust laws.
Over the years, we have heard numerous complaints about potential anticompetitive conduct by large technology firms, and we have held hearings that have explored these issues. Many of us have called on both the FTC and the Justice Department to investigate potential anticompetitive activity in these markets, particularly following the significant enforcement actions taken by foreign competition enforcers against these same companies. When we saw the recent press reports of potential U.S. investigations into these matters, we were encouraged, but also somewhat troubled that such inquiries were not already well underway. But given the silence of the FTC and the Justice Department, the truth is that we still do not know if these investigations have actually been initiated and neither do the American people.
We understand that, under its internal policies, the FTC typically refrains from commenting on nonpublic investigations, but these circumstances are far from typical. The significant public interest in and allegations surrounding the business conduct of Big Tech and the leaks concerning the clearance process relating to potential investigations of Amazon, Apple, Facebook and Google have made these matters highly unusual. Accordingly, we respectfully request answers to the following questions:
- Does the FTC currently have an open nonmerger, antitrust investigation into the conduct of Amazon or any of its subsidiaries? If so, describe the nature and general scope of any such investigations into Amazon or any of its subsidiaries.
- Will the FTC commit to issuing a public statement concerning the general findings and outcome of any nonmerger, antitrust investigation into the conduct of Amazon or any of its subsidiaries?
- Does the FTC currently have an open nonmerger, antitrust investigation into the conduct of Facebook or any of its subsidiaries? If so, describe the nature and general scope of any such investigations into Facebook or any of its subsidiaries.
- Will the FTC commit to issuing a public statement concerning the general findings and outcome of any nonmerger, antitrust investigation into the conduct of Facebook or any of its subsidiaries?
Thank you for your prompt attention to this request. We look forward to your response and to hearing you discuss the FTC’s ongoing enforcement efforts at the July 23 hearing before the Antitrust Subcommittee.
Sincerely,
____________________________________________________________________________________
The Honorable Makan Delrahim
Assistant Attorney General, Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530
Dear Assistant Attorney General Delrahim:
The last several weeks have seen numerous news articles concerning potential federal antitrust investigations into major American technology firms, including possible Justice Department, Antitrust Division investigations of Alphabet Inc. (Google) and Apple Inc. (Apple) and Federal Trade Commission (FTC) investigations into Amazon and Facebook. Yet neither agency has provided comment on or corroboration of any of these reports. We write to request that the Antitrust Division provide basic disclosures regarding the existence of Justice Department antitrust investigations into Google and Apple to Congress and the American public.
We have previously highlighted the importance of antitrust enforcement in connection with online digital platforms, which occupy an influential and growing sector of our economy. Amazon, Apple, Facebook and Google touch the daily lives of millions of Americans, connecting friends and family, entertaining us, delivering news and information, and helping us buy and sell the products we need. But the benefits that these companies deliver to consumers do not put them outside of the reach of our antitrust laws.
Over the years, we have heard numerous complaints about potential anticompetitive conduct by large technology firms, and we have held hearings that have explored these issues. Many of us have called on both the FTC and the Justice Department to investigate potential anticompetitive activity in these markets, particularly following the significant enforcement actions taken by foreign competition enforcers against these same companies. When we saw the recent press reports of potential U.S. investigations into these matters, we were encouraged, but also somewhat troubled that such inquiries were not already well underway. But given the silence of the FTC and the Justice Department, the truth is that we still do not know if these investigations have actually been initiated and neither do the American people.
We understand that the Antitrust Division typically refrains from commenting on nonpublic investigations, but these circumstances are far from typical. The significant public interest in and allegations surrounding the business conduct of Big Tech and the leaks concerning the clearance process relating to potential investigations of Amazon, Apple, Facebook and Google have made these matters highly unusual. Accordingly, we respectfully request answers to the following questions:
- Does the Justice Department currently have an open nonmerger, antitrust investigation into the conduct of Google or any of its subsidiaries? If so, describe the nature and general scope of any such investigations into Google or any of its subsidiaries.
- Will the Justice Department commit to issuing a public statement concerning the general findings and outcome of any nonmerger, antitrust investigation into the conduct of Google or any of its subsidiaries?
- Does the Justice Department currently have an open nonmerger, antitrust investigation into the conduct of Apple or any of its subsidiaries? If so, describe the nature and general scope of any such investigations into Apple or any of its subsidiaries.
- Will the Justice Department commit to issuing a public statement concerning the general findings and outcome of any nonmerger, antitrust investigation into the conduct of Apple or any of its subsidiaries?
Thank you for your prompt attention to this request. We look forward to your response and to hearing you discuss the Antitrust Division’s ongoing enforcement efforts at the July 23 hearing before the Antitrust Subcommittee.
Sincerely,
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