Facebook and Google are about to face new antitrust investigations from states across the US over concerns the companies have been stifling competition.
On Friday, New York's attorney general Letitia James announced she was leading a bipartisan coalition to investigate Facebook over possible antitrust violations and whether the company endangered consumer data. The investigation will also look into Facebook's influence on digital marketing, and if the company has been increasing the price of online advertising.
"The largest social media platform in the world must follow the law," James said in a tweet. The attorneys general of seven states, along with the District of Columbia, will be joining her on the investigation.
On the same day, the attorney general of Texas, Ken Paxton, announced a separate bipartisan probe geared toward the anticompetitive practices of "large tech firms." Although more details will be shared on Monday, The New York Times is reporting that the investigation will mainly focus on Google.
The scrutiny arrives as federal authorities are embarking on their own investigations into big tech. In July, the Department of Justice announced it was opening an antitrust probe into the largest online platforms. A day later, Facebook revealed the US Federal Trade Commission had launched a separate antitrust probe into the social network.
A big question is whether any of these efforts will lead to a major regulatory action. Facebook recently agreed to pay a $5 billion fine to the FTC for committing privacy violations related to the Cambridge Analytica scandal. However, many critics blasted the penalty as too low for a company that rakes in $55 billion in annual revenue.
Others, including Democratic US presidential candidates, say more drastic action is needed. They've been calling for the break up of the major tech companies, claiming they possess too much power over the economy and society. However, both Facebook and Google have been pushing back on the perception that they engage in anticompetitive practices.
In a blog post on Friday, Google's senior vice president Kent Walker claimed the company actually creates more choices for consumers, often times at no cost. "Google is one of America's top spenders on research and development, making investments that spur innovation: Things that were science fiction a few years ago are now free for everyone," he said.
"We look forward to showing how we are investing in innovation, providing services that people want, and engaging in robust and fair competition," he added.
Facebook also told The Times it plans on cooperating with the state attorneys general and showing them how the company creates a "competitive environment." Previously, Facebook has said it faces plenty of competition in the market from services such as Snapchat, YouTube, Apple's iMessage, among others.