The FTC wants to see whether smaller acquisitions made by Big Tech are anticompetitive

In other words, the section 6(b) investigations allow the FTC to examine small deals that normally would escape the scrutiny of the government’s antitrust watchdogs because of their sizes. The information that the FTC will request from the five tech firms is similar to the data that it would have turned over in a Hart-Scott-Rodino filing. But some of this information is rather broad. For example, section 6(b) filings require that a company reveal its acquisition strategies, any agreements to hire personnel from other firms and any non-compete clauses.

The Special Orders request seeks information about deals that closed over the last 10- years. A panel in the U.K. determined that the five named tech firms have made over 400 acquisitions during the last decade. Senator Richard Blumenthal (D., Conn.) said, “It has been clear for a decade that Big Tech is stifling innovation through its catch-and-kill tactics and unfettered market dominance. Every time that Google, Amazon, Apple, and Facebook acquire the latest cutting-edge artificial intelligence startup, innovative wearable device or emerging social network, they irreversibly squash another generation of novel competitors that could benefit consumers and bolster our nation’s technological advancement.”

If you think that all of this data really doesn’t belong in the hands of the government, the FTC is also demanding information related to products that were developed following a merger and the strategies involved in post-merger pricing of products. The filing also requires a company to reveal how it integrated acquired assets and data into its operations. The FTC wants to examine how small companies perform after they are acquired by larger tech firms.

Explaining why all of this data is needed, FTC Chairman Joe Simons said, “Digital technology companies are a big part of the economy and our daily lives. This initiative will enable the Commission to take a closer look at acquisitions in this important sector, and also to evaluate whether the federal agencies are getting adequate notice of transactions that might harm competition. This will help us continue to keep tech markets open and competitive, for the benefit of consumers.”

The only company among the five that made a statement about the FTC’s request was Microsoft. The software giant simply stated that “We look forward to working with the FTC to answer their questions.”