Republican lawmaker sold thousands in Apple stock as DOJ escalated antitrust investigation

EXCLUSIVE — A Republican A congressman has decided to sell thousands of dollars worth of in Apple Stock as the Justice Department The watchdogs have stopped the speeding up of antitrust investigations into the tech giant.

Rep. Scott Franklin (R.FL) sold up $50,000 in Apple shares on February 15. This was a company regulators were concerned about due to monopoly concerns. According to a financial disclosure. The same day, it was reported By the Wall Street Journal The DOJ was increasing its antitrust investigation of Apple by appointing more litigators to examine company documents.

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“Rep. Franklin’s very large sale of Apple stock on the same day that the Justice Department decided to advance its antitrust investigation of the company raises reasonable suspicions that Franklin may be using his public office for private gain,” Craig Holman is an ethics expert and lobbyist at the liberal think-tank Public Citizen. Washington Examiner. “The congressman sits on the House Committee on Science, Space, and Technology, providing an opportunity for access to inside information on Apple and the investigation.”

Holman added: “It cannot be known by this coincidence in timing alone whether Franklin actually received inside information about Apple, but it certainly raises troubling questions about the legitimacy of the transaction.”

In 2019, the DOJ of then-President Donald Trump opened an antitrust investigation into Apple. FacebookGoogle, and Amazon — seeking to examine whether the companies illegally stifle competition online. The President’s Apple investigation by the DOJ Joe Biden This concerns its third-party software policies as well as iOS, its mobile system. The company has been accused of promoting its own products over those of other developers according to the Wall Street Journal.

Sources familiar with this matter informed the Wall Street Journal The DOJ informed Kanter on February 15 that they were considering looping Jonathan Kanter as an assistant U.S. Attorney General for the Antitrust Division into the Apple inquiry. Kanter was Cleared According to the outlet, in mid-January, the DOJ was assigned to oversee antitrust cases against Alphabet, Google’s parent company.

Franklin, a new member to the Science, Space and Technology Committee, revealed the Apple sale March 8. Franklin sits on the research and technology subcommittee of the committee. “competitiveness” And “antitrust,” As well as “regulatory and other legal and governmental policies as they relate to technological development and commercialization,” According Visit its website.

“The congressman was not aware of the sales until February 22nd,” Russel Read, a spokesperson from Franklin’s office told the Washington Examiner. “He had asked his broker at the beginning of February to liquidate shares of stock to generate a certain dollar figure. He left it to the broker to decide which specific stocks, how many shares, and the date(s) of sale(s).”

Read stated that the sales were not connected to the antitrust investigation by the DOJ into Apple. However, a right-leaning watchdog group claimed that transactions like Franklin’s were in no way connected to Apple’s antitrust investigation. “to question the motivation of our elected officials.”

“Not only are members prohibited from trading stocks based on private information they have knowledge of, but they are also required to act impartially when taking any official action, and clearly their stock ownership can influence their actions,” Kendra Arnold is the executive director of Foundation for Accountability and Civic Trust. Washington Examiner.

“These types of conflicts of interest are especially difficult for the public to monitor because the public doesn’t have access to all the information the member does, nor is it possible for the public to know every action the Member takes on a daily basis — whether advocating for a position or making committee decisions,” Arnold was the second. “This makes it extremely important that all Members avoid even an appearance of a conflict.”

Another Watchdog Arnold was also in agreement.

“Whether or not this particular trade was technically legal is almost beside the point,” Joshua Graham Lynn is the CEO of RepresentUs. He spoke on behalf of RepresentUs. Washington Examiner. “Americans’ trust in Congress and our government institutions generally is already at a dangerous low — and examples like this only make it worse.”

Franklin has also made public other stock trades for tech companies in recent months. On February 15, and 21, he sold Microsoft shares totaling $100,000. The records show that the congressman purchased up to $100,000 in Microsoft shares between March 2022 to September 2022 as well as up to $50,000 in Apple and Alphabet.

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In recent years, antitrust investigations and cases have focused on Microsoft and Alphabet. The Federal Trade Commission filed an Antitrust Lawsuit in December 2022 to stop Microsoft from acquiring Activision, a game developer. Documents show.

The DOJ published an antitrust statement one month later in January 2023. Forensic hearing Google to stop it from separating its ad business. This latest action came after the Trump DOJ claimed in an October 2020 Forensic hearing Google illegally monopolized search and advertising.