US Federal Trade Commission plans investigation into Google, Facebook and Amazon over data collection practices

FTC lays the groundwork for an in-depth investigation with a 6(b) demand for information from data-gathering technology companies

The US Federal Trade Commission (FTC) is considering a wide-ranging enquiry into collection and use of consumer data by major tech companies in the country.

According to Bloomberg News, FTC Chairman Joe Simons has informed Congress about the agency's plans to use its authority to start demanding information from technology firms about their data practices.

The probe is expected to intensify pressure on tech firms already facing increased scrutiny in the US and around the world over data collection practices.

The FTC plans to conduct a 6(b) probe, asking companies to hand over detailed information about their business practices, including trade secrets.

The news comes about a year after the agency started a still on-going probe into Facebook's data practices. The probe started following revelations that Facebook had shared information on up to 87 million users with Cambridge Analytica.

Last week, the New York Times reported that US federal prosecutors are conducting a criminal investigation into data deals that Facebook struck with some of the world's largest tech firms.

The report claimed that a grand jury in New York had subpoenaed records from at least two major smartphone makers that signed deals with Facebook for access to the personal information of millions of its users.

Facebook currently faces several lawsuits and inquiries in the US as well as other countries over its privacy practices, including investigations by the FTC and the US Securities and Exchange Commission. The company says it is fully cooperating with investigating agencies in all probes.

Simons is under pressure from both Republicans and Democrats in Congress to more aggressively regulate the tech industry in the US.

Last month, Simons ordered the creation of a task force to probe potentially anti-competitive conduct by big platforms.

In November, Republican Senator John Thune asked Simons if the FTC would consider ordering a 6(b) study on Facebook, Amazon and Google to learn about their data collection practices and how they use and share that data.

At the time, Simons described the 6(b) option as a "powerful tool" but did not say anything about its possible execution in future.

Earlier this month, Simons said in his written response to the Senate that he agreed with Thune. "We are developing plans to issue 6(b) orders in the technology area," Simons wrote.

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