Big Tech Strikes Out With The DOJ

The U.S. Justice Department announced a wide antitrust review on big tech encompassing what seems to be Google, Facebook, Amazon, and others. While a review won’t necessarily lead to any action — bipartisan appetite for a fight with the U.S. tech giants has been growing.

The DOJ wants to investigate if large tech platforms have been using their size and power in an anticompetitive manner. These investigations can have large impacts as firms under investigation may reduce their investment in potentially targeted ventures or units. While it’s too soon to know if anything will come from the investigations it’s important to note the damage antitrust action has had in the past.

Consider Microsoft, currently the largest company by market cap, their fight with the DOJ at the turn of the century left them scared to invest in new technologies and initiatives which in the end created an opportunity for Apple and Google to survive and grow. In addition to the scars businesses are left with — those being targeted need to invest their time, energy, and financial resources to their defense. In short, it becomes a black cloud that can persist for years.

This could be an opportunity for small businesses to grow their businesses and lodge complaints. While the investigation may not lead to a case against any specific company it will definitely lead to an opportunity for those on the sidelines. This is the beginning of a long and drawn out process and may just be the catalyst needed to bring new blood into a consolidating tech market.

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