FTC Solicits ‘Data Practices’ Information From Major Tech Companies

The Federal Trade Commission requires nine technology companies to share information on how to collect and process data for their users, the agency said on Monday.

The Companies Involved

The owner of Amazon, TikTok ByteDance, Discord, Facebook and its subsidiary WhatsApp, Reddit, Snap, Twitter and YouTube owned by Google each were sent instructions to transfer information about their data practices. Companies have 45 days to respond from the date they receive orders.

In addition to details on how the services collect and use data, the agency seeks information on how they choose which ads to show their users, whether algorithms or analytics of data used in personal data, how to “measure and promote” engagement from for users and how their data habits affect children and teens.

The FTC exercises its jurisdiction under Section 6 (b) of the FTC Act, which allows it to pursue a wide range of disciplines and law enforcement. The organization launched a separate 6 (b) study earlier this year to look at previous acquisitions by Google parents Alphabet, Amazon, Apple, Facebook and Microsoft that would not be subject to pre-reporting reporting rules.

Chairman Joe Simons stated that at a time when the 6 (b) study was not linked to coercion, a review of the merger “could certainly help enforce.”

Facebook Under Strict Radar

The FTC filed a lawsuit last week on Facebook alleging that the company had been illegally maintaining a monopoly in personal social networking services. The lawsuit, filed by a separate petition in 48 regional and regional groups, claims that Facebook has bought new rivals such as Instagram and WhatsApp, which it fears will enter its business territory.

Proponents claim that Facebook’s actions have hurt consumers in part by mixing the quality of services available, including based on factors such as privacy. Facebook has called the “review history” of its two acquisitions approved by the FTC itself.

Commissioners voted to issue orders on Monday in a 4-1 vote with Republican Commissioner Noah Joshua Phillips opposing it. In a statement, Phillips wrote that although he acknowledged the purpose of the orders, he believed they were “a form of non-punishment for a variety of topics, some of which are related to a focus on the investigation.”

Why This Inquiry?

Phillips added, “The breadth of the investigation, the irrational relationships of its components, and the diversity of the recipients combined gave these orders the opportunity to produce a kind of knowledge of public needs, and certainly divert the Commission’s limited resources. ”

Three commissioners who voted in favor of the statement said in a statement, “The FTC wants to understand how business models influence what Americans hear and see, talk to, and what information they have … And the FTC wants to better understand the financial motives of social media and video streaming services. . ”

“We are working, as we always do, to ensure that the FTC has the information it needs to understand how Twitter operates through its services,” a Twitter spokesman said in a statement.

“Discord is very concerned about user privacy and we look forward to working with the FTC to answer their questions about our privacy practices,” a company spokesman said in a statement. “The important thing is that there are no ads on Discord. We do not make money by advertising, selling user data to advertisers, or by sharing personal information with others. Instead, the company generates its revenue directly from users through a paid subscription service called Nitro.

Some companies listed in the order did not immediately respond to CNBC’s requests for comment.

Synopsis

The Federal Trade Commission requires nine technology companies to share information on how to collect and process data for their users, the agency said on Monday.

The owner of Amazon, TikTok ByteDance, Discord, Facebook and its subsidiary WhatsApp, Reddit, Snap, Twitter and YouTube owned by Google each were sent instructions to transfer information about their data practices. Companies have 45 days to respond from the date they receive orders.

The FTC exercises its jurisdiction under Section 6 (b) of the FTC Act, which allows it to pursue a wide range of disciplines and law enforcement.