As part of a far-reaching investigation, the US antitrust and consumer protection agency, the Federal Trade Commission (FTC), asked a total of nine well-known social networks and video streaming companies to provide information on their business practices in connection with the use of user data put. The companies the FTC wrote to on Monday include Amazon, Facebook and its subsidiary WhatsApp, Reddit, Snap as the parent company of Snapchat, Twitter, Google parent Alphabet, YouTube, Discord and Bytedance as the TikTok owner.

As stated in the FTC notice, companies should provide information on how they collect and use personal data of their users . In detail, the FTC is interested in user tracking and the extent to which personal data and demographic information are used for advertising purposes. The companies should explain on what basis which advertisements are displayed to consumers and whether they apply algorithms or data analyzes to personal data. In addition, the FTC is calling for clarification on how they measure user engagement and what measures they use to promote it. The aim is for companies to show how these practices affect children and young people.

“Social media and video streaming companies track users everywhere via apps on their mobile devices that are always available these companies monitor where users go, what people they interact with, and what they do. But for what purpose? ” FTC commissioners Rohit Copra, Rebecca Slaughter and Christine Wilson believe that too much remains “dangerously opaque” about the industry, a joint statement said. Together with FTC Chairman Joseph Simons, the three commissioners had decided to request the information. The panel’s fifth commissioner, Noah Phillips, voted against. Although he also sees the overriding goal of shedding light on the business practices of big tech companies, the information requested is too detailed.

No prosecution measure The investigation now initiated by the FTC is not related to any law enforcement measure. The information provided by the companies could, however, be used to initiate possible action against the social networks and video streaming companies.

The FTC as an independent authority has the right to obtain information from US companies in order to to prevent unfair and unfair business practices if necessary and to ensure a functioning market.

Of the four big tech companies Alphabet, Amazon, Apple and Microsoft, the FTC had 2020 Obtained extensive information on the business conduct of the companies in order to also investigate possible effects under antitrust law. The FTC filed a competition lawsuit against Facebook in December because Facebook is said to have bought Instagram and WhatsApp in order to secure its own dominance in the market.

( olb)