(TheLibertyRevolution.com)- Despite current and pending antitrust lawsuits, Big Tech companies Facebook and Google are reportedly buying up rival companies to cement their position as leaders in their respective fields.
According to Axios, Facebook and Google – along with other tech giants – have continued to finalize deals to purchase small companies that operate as competitors to the big social media and technology companies. Facebook announced on Monday that it had purchased Kustomer, a startup that develops customer service chatbots. Facebook reportedly paid $1 billion for the company.
In a “why it matters” section of the report, Axios explains that the massive deal – which is as big as the $1 billion purchase of Instagram back in 2012 – is the “latest sign that the world’s biggest tech companies, despite facing enormous antitrust scrutiny globally, will not stop buying up other companies.”
Other notable deals include plans by Facebook to purchase Giphy for $400 million, and by Google to purchase health fitness brand Fitbit for a massive $2.1 billion.
In October, the Department of Justice and 11 states file a case against Google that accused the tech and social media giant of anti-competitive practices in the field of online advertising. Google, according to the suit, uses its position in the online search market to dominate the online advertising business.
Axios reported that new acquisitions for the big companies could be a tactic to make it harder for regulators to claim they hold monopolies when they are new entrants into different markets.
“It’s hard for regulators to prove that companies like Facebook and Google hold monopolies when they are new entrants in a market, so the companies’ acquisitions in newer lines of business may not set off alarms,” the outlet reported.
As well as the pending lawsuit, as many as four additional cases are reportedly being prepared against Facebook and Google. The cases are expected to be launched by the end of January next year, and will reportedly target the tech giants’ abuse of their position in the internet economy.
CNBC also reported in November that the two companies are expected to be scrutinized in the United Kingdom over antitrust issues.
CNBC: Google, Facebook to be scrutinized by U.K. antitrust unit from next year
— Josh Caplan (@joshdcaplan) November 27, 2020
Facebook and Google have previously denied that their business tactics are anti-competitive, contesting that they offer free services to millions of businesses and individuals globally.