The Federal Trade Commission announced Tuesday the creation of an initiative called the Technology Task Force, tasked with ensuring fair competition among the nation’s technology firms.
The move came right on the heals of a U.S. appeals courts clearing the merger of AT&T and Time Warner.
“The role of technology in the economy and in our lives grows more important every day,” said FTC Chairman Joe Simons. “As I’ve noted in the past, it makes sense for us to closely examine technology markets to ensure consumers benefit from free and fair competition. Our ongoing Hearings on Competition and Consumer Protection in the 21st Century are a crucial step to deepen our understanding of these markets and potential competitive issues. The Technology Task Force is the next step in that effort.”
The AT&T-Time Warner merger has raised concerns over monopolistic tendencies within the U.S. technology industry. The Department of Justice initially blocked the $85 million merger between the two, citing their concerns the merger creating a massive entry-barrier into the market.
But a three-judge panel found that the complaints made by DOJ in their move to block the merger were “unpersuasive” in convincing that the merger would hinder competition in the industry.
The new entity owns some of the largest telecommunications and media names in the country, including HBO, CNN, TBS, and DirecTV.
The move is just one of the many tech acquisitions and mergers that has shaped the industry in the last years. For example, Facebook’s response to the rise in popularity of Snapchat was an all-out acquisition of the popular photo-based app Instagram. Microsoft responded to market pressures created by Apple’s FaceTime and its uniform integration across Mac platforms by purchasing webchat company Skype.
