US Big Tech Companies Face 'Ssamyeon Choga' in Domestic and International Investigations

EU's Antitrust Probe into Google Ads
'Amazon Sniper' Khan FTC Chair
Amazon's MGM Acquisition 'Blocked'

[Image source=Reuters Yonhap News]

[Asia Economy Reporters Kwon Jae-hee, Kim Su-hwan] U.S. Silicon Valley big tech companies are facing a crisis from all sides. In Europe, the European Union (EU) Commission has launched an antitrust investigation into Google's digital advertising, while in the U.S., the Federal Trade Commission (FTC) is expected to potentially block Amazon's acquisition of MGM.

On the 22nd (local time), The Wall Street Journal (WSJ) reported that the European Commission, the EU's executive branch, has officially started an investigation into whether Google violated competition regulations in its core revenue-generating online advertising sector.

The antitrust investigation is a pre-litigation stage, and if antitrust violations are confirmed, Google could face fines of up to 10% of its annual revenue. However, despite Google having been fined several times in the past, antitrust behavior persisted, leading the EU to take a more serious stance by considering future litigation rather than just imposing fines.

Bloomberg analyst Aitor Ortiz said, "This investigation is targeting Google's core business of online advertising," adding, "Depending on the investigation results and future sanctions, it could significantly impact Google's operating profits."

On the same day, WSJ also reported that Lina Khan, chair of the Federal Trade Commission (FTC) known as the 'Amazon hunter,' is reviewing Amazon's MGM acquisition deal. Until now, the U.S. Department of Justice has been investigating monopolistic practices of Google, Apple, Facebook, and Amazon, but it has been decided that going forward, the Department of Justice will investigate Google and Apple, while the FTC will investigate Facebook and Amazon.

For Amazon, which is in the final stages of acquiring MGM, the appearance of Chair Khan complicates the calculations. Khan's 2017 law school graduation thesis was titled "Amazon's Antitrust Paradox," reflecting her critical stance on big tech companies' monopoly issues. Considering Khan's tendencies, there is speculation that the FTC may put the brakes on Amazon's MGM acquisition.

This content was produced with the assistance of AI translation services.