More Antitrust Scrutiny for Tech Companies-Justice Department

Summary: The Obama administration has put a tougher antitrust action to tech companies and telecommunication firms to look for potential abuses committed by the companies that would affect consumer rights.

The oversight action is part of the administration's move to ensure the flow of business in the US in the wake of the recession.

The United States Justice Department, led by President Barack Obama, said that it will now implement a tougher oversight action to technology and telecommunications companies operating in the country, saying eight years of light oversight and scrutiny is now over.

In her speech, Justice Department Antitrust Division Head Christine Varney vowed to take a tougher action over the potential abuses that the telecoms and technology companies may commit. She said that this kind of action is needed in order to protect the citizens from potential abuses by the companies.

As an example, the Justice Department is now going after computer giant IBM Corp. The government is looking if the company has exploited its position to acquire more market shares after it has released it massive data-processing unit called the mainframe.

IBM has acknowledged the probe, which is still in its preliminary stages. However, there is still no assurance if the case will lead to a formal investigation.

But despite this, the government stressed that it is part of the overall effort to seek out more violations committed by companies, especially with the rapidly changing sector like telecommunications and technology.

It was learned that these companies are the main driving force of the US economy. That is why the Obama administration wanted to ensure the flow of competition and not monopolization, the Justice Department said.