Big Tech under the microscope of the U.S Department of Justice
A series of scandals, fines and corporate disasters
With trust in the tech giants being at an all-time low due to several privacy mishaps and antitrust behavior, it’s no wonder the government regulators are activated.
Facebook has been notoriously trying to evade the limelight, but a series of data breaches were millions of users’ data have been leaked to the public didn’t help the situation. More than a quarter of the world’s population is volunteering their private information, whereabouts, photos and political views on the social media giant’s website. Information that is later to be used to provide metrics for marketers who can later serve them with targeted ads.
In fact, U.S president Donald Trump has been a vocal critic of Facebook and Google for trying to sway the narrative towards their left-leaning agenda. He has also called for a suit against them as they have purportedly been trying to manipulate the 2016 presidential elections.
Trump also criticized Amazon for tax-evasion and abusing the U.S postal office for its deliveries at a cost of the government while leaving room little room for other retailers to get a foothold in the market.
Google and Facebook have been on the receiving end of multiple fines regarding illegal advertising practices and privacy leaks in EU. The companies were fined with billions of dollars in penalties last year resulting in shaving quite a few million of dollars in earnings on the stock exchange, but they are already on track to complete recovery.
Next steps for investors
While the probe means that there is a rocky road ahead for the FAANG stocks and their shareholders will be running to diversify their portfolios – this is a strong sell signal for CFD traders to short tech stocks for some potentially easy profit.
However, it goes without saying, that Big Tech wasn’t caught off guard by this probe in the slightest as they wouldn’t be oblivious to an upcoming formal investigation by Washington. It’s a well-known fact that the companies have been upgrading their defense teams of lawyers and lobbying committees for some time now in hopes to find ways to respond to the accusation of anti-competitive practices and downplay their importance.