Federal Trade Commission addressed how US antitrust laws apply to acquisitions of nascent or potential competitors by digital platforms.
The testimony noted that many sectors of the economy have experienced significant disruption, which has resulted from the widespread use of technology to support new and evolving business models.
Testifying on behalf of the FTC, Bureau of Competition Director Bruce Hoffman stated, “This hearing focuses on one potential form of conduct that could harm competition in digital technology markets – the acquisition by dominant firms of nascent or potential competitors. This type of behavior, of course, can be just as anticompetitive as any other form of conduct. If a firm buys a nascent rival rather than trying to kill it through other means, that purchase is just as worthy of antitrust scrutiny.”
As part of its commitment to examining the effectiveness of its antitrust enforcement efforts, the Commission has held a series of hearings on competition and consumer protection topics over the last year, the testimony states. Several panels discussed issues relating to technology and the digital economy, including the acquisition of potential or nascent competitors in the digital marketplace.
To address the potential challenges posed by digital industries, the Bureau of Competition recently formed a Technology Task Force, which is actively conducting investigations.
Full Content: FTC
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