What to know about Trump’s antitrust efforts against tech giants | Technology News

Read Time:5 Minute, 45 Second

The Trump administration isn’t letting up on the tech giants.

On Thursday, a federal judge ruled that Google acted illegally to maintain a monopoly in some online advertising technology. And on Monday, the Justice Department will argue that a federal judge should separately force Google to sell its Chrome web browser as it kicks off a three-week hearing about how to address the company’s search monopoly.

All this comes as the Federal Trade Commission opened a roughly three-month courtroom trial this week against Meta over claims that the social media giant snuffed out nascent competitors when it bought Instagram and WhatsApp.

Story continues below this ad

Many of these cases, which helped set into motion a new era of antitrust scrutiny, were filed during President Donald Trump’s first term in office. They were advanced by the Biden administration, which also filed monopoly lawsuits against Amazon, Apple and Google’s ad technology business.

Investors in Silicon Valley and on Wall Street hoped that Trump might show technology companies more deference during his second term, as he promised to deregulate industries. Some legal experts think the administration could still take a lighter hand on blocking mergers and set fewer proactive regulations for tech.

But so far, Trump’s appointees have promised to continue much of the scrutiny of the biggest tech companies, despite the industry’s hopes.

“I think that they may not have fully focused on how much the first Trump presidency had to do with setting in motion this reexamination of tech,” said Bill Kovacic, a former FTC chair.

Here’s what to know.

Story continues below this ad

Who is in charge of antitrust enforcement now?

Trump appointed Andrew Ferguson as chair of the FTC, which enforces antitrust and consumer protection laws. Ferguson, a lawyer who spent much of his career working for powerful Republican senators, has said he wants to increase scrutiny of the ways that social media companies decide to take posts down. Conservatives have complained for years that platforms like Facebook and YouTube disproportionately censor right-leaning viewpoints.

“I will throw every resource the agency has at prosecuting the cases against Big Tech that we’ve got going,” Ferguson said in an appearance on the Bloomberg podcast “Odd Lots” this year.

The new leader of the Justice Department’s antitrust division, Gail Slater, a veteran tech and media lawyer, worked in the White House during Trump’s first term. She has also pledged to enforce antitrust laws aggressively.

“It’s now a bipartisan issue, and there’s a consensus around the need for robust antitrust enforcement,” Slater said at an event hosted this month by Y Combinator, the Silicon Valley startup accelerator, which has pushed for more antitrust scrutiny of the tech giants.

Story continues below this ad

Where do the major antitrust lawsuits against the tech giants stand?

Five government cases accuse tech companies of maintaining illegal monopolies, and all are moving through the courts. The companies deny the allegations.

— The FTC sued Meta in 2020, arguing that its acquisitions of Instagram in 2012 and WhatsApp in 2014 violated the law by using what regulators call a “buy or bury” strategy to eliminate its nascent rivals. The trial is expected to last into July and feature testimony from high-profile figures including Meta CEO Mark Zuckerberg.

— The Justice Department sued Google in 2020 over claims that it had a monopoly in online search. A federal judge ruled for the government last year and will convene a three-week hearing on how to address Google’s monopoly starting Monday. The government has suggested that the company sell Chrome, among other measures. Google has proposed fewer restrictions and has said it plans to appeal.

— The Justice Department accused Google in 2023 of illegally dominating the advertising technology business. A federal judge heard arguments in that case last year, and a ruling was issued Thursday. Google was found to have been a monopolist.

Story continues below this ad

— The FTC accused Amazon in a 2023 lawsuit of squeezing small merchants that use its marketplace to sell to consumers. A federal judge rejected Amazon’s attempt to dismiss the case last year. It is scheduled to go to trial next year.

— The Justice Department sued Apple last year over claims that the company’s interwoven ecosystem of technology makes it hard for consumers to ditch their iPhones and iPads. Apple has asked a federal judge to dismiss the lawsuit.

What about tech industry mergers and acquisitions?

The Biden administration tried and failed to block numerous tech deals, including Meta’s purchase of a small virtual reality startup, Within. The push to stop acquisitions outraged investors who back small companies that want to cash out by being acquired by a tech giant.

Trump’s appointees say they want to get out of the way of acquisitions that don’t present a competitive problem. Slater has expressed an openness to companies’ proposing settlements — such as selling off similar assets — which can help resolve concerns about deals.

Story continues below this ad

In late January, the Justice Department sued to block the business software company Hewlett Packard Enterprise from buying Juniper Networks, a networking firm, for $14 billion. It was the first lawsuit to challenge a tech deal in Trump’s second term.

During the first Trump administration, the Justice Department unsuccessfully challenged AT&T’s purchase of Time Warner.

What does this mean for the artificial intelligence race?

Last year, the Justice Department and the FTC agreed to divide up responsibility for investigating whether the biggest players in artificial intelligence were violating antitrust laws. The Justice Department started investigating Nvidia, while the FTC took Microsoft and its partner, OpenAI.

It is unclear whether those investigations will result in lawsuits. The Trump administration has promised to clear the way for American companies to develop AI, including rescinding a Biden-era executive order that put guardrails on the use of the technology.

Story continues below this ad

The administration has solicited the industry’s input on how best to move forward with policy around the technology, an opening that companies and investors took to lobby for fewer rules.

“I think it is extremely important that we protect competition in the AI space, but I think it is equally important that the government not race to regulate AI,” Ferguson said on Bloomberg TV in March.



Source link

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Can I play Blue Prince on Steam Deck?
Next post U.S. Adds Fees for Chinese Ships in Effort to Boost Shipbuilding