DOJ issues new warning to big tech: Data and privacy could be competition concerns

Makan Delrahim, the Justice Department’s top antitrust enforcer, warned tech giants that amassing vast quantities of consumers’ data could create competition concerns in the eyes of federal regulators, marking the US government’s latest shot across the bow at Silicon Valley. Speaking at conference hosted by a tech lobbying group, Delrahim said DOJ is “studying the ways market power can manifest in industries where data plays a key role." He stressed people’s private information had become the lucrative “oil” for the digital age — and its misuse could threaten to harm consumers and corporate competitors. While Delrahim did not mention any specific company by name, the comments could have vast implications at a moment when the agency is investigating tech giants including Google.

“Although privacy fits primarily within the realm of consumer protection law, it would be a grave mistake to believe that privacy concerns can never play a role in antitrust analysis,” Delrahim said. Later, he added, “Without competition, a dominant firm can more easily reduce quality — such as by decreasing privacy protections — without losing a significant number of users.”