Trump Expected to Shift Course on Antitrust, Stop Google Breakup

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
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Trump Expected to Shift Course on Antitrust, Stop Google Breakup

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)
The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 10, 2024. (Reuters)

Donald Trump will likely dial back some of the antitrust policies pursued under the administration of President Joe Biden, potentially including a bid to break up Alphabet's Google over its dominance in online search, experts said.

Trump is expected to continue cases against Big Tech, several of which began in his first term, but his recent skepticism about a potential Google breakup highlights the power he will hold over how those cases are run.

"If you do that, are you going to destroy the company? What you can do without breaking it up is make sure it's more fair," he said at an event in Chicago in October, Reuters reported.

The US Department of Justice is currently pursuing two antimonopoly cases against Google - one over search and another over advertising technology, as well as a case against Apple . The US Federal Trade Commission is suing Meta Platforms and Amazon.com.

The DOJ has laid out a range of potential remedies in the search case, including making Google divest parts of its business such as the Chrome Web browser and ending agreements that make it the default search engine on devices like Apple's iPhone.

But the trial over those fixes will not happen until April 2025, with a final ruling likely in August. That gives Trump and the DOJ time to change course if they choose, said William Kovacic, a law professor at George Washington University.

"He is certainly in the position to control the DOJ's disposition of the remedies phase," said Kovacic, who chaired the Federal Trade Commission under then-president George W. Bush.

Trump is also likely to pull back on some policies that have irritated dealmakers under the Biden administration, attorneys said. One is a reluctance to settle with merging companies, which was previously common and let companies address competition problems that agencies raised about deals by taking actions like selling part of the business.

The FTC and DOJ would likely scrap merger review guidelines crafted under Biden, said Jon Dubrow, a partner at law firm McDermott Will & Emery.

"The 2023 merger guidelines were very hostile to mergers and acquisitions," he said, echoing a view widely held on Wall Street.

The FTC's ban on most noncompete clauses in employer-employee contracts could be more vulnerable to a lawsuit brought by the US Chamber of Commerce, if the FTC votes not to defend it.

About 30 million people, or 20% of US workers, have signed noncompetes, according to the FTC. The agency is currently appealing a court ruling that blocked the rule.

But such actions to dismantle the work of FTC Chair Lina Khan will depend on a Trump-appointed replacement being confirmed to give the bipartisan five-member commission a Republican majority.

Khan's initiatives focused on what she saw as societal harms caused by unchecked corporate consolidation, drawing praise from both Democrats and some Republicans, including Vice President-elect JD Vance. But some in the business and legal communities have criticized her approach as too aggressive.

Trump is not expected to drastically curtail antitrust enforcement, however. A similar number of merger cases was brought under his first term as during the first two years of the Biden administration, according to an analysis by the Sheppard Mullin law firm.



Apple and Google Face UK Investigation into Mobile Browser Dominance

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake
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Apple and Google Face UK Investigation into Mobile Browser Dominance

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake

Apple and Google aren't giving consumers a genuine choice of mobile web browsers, a British watchdog said Friday in a report that recommends they face an investigation under new UK digital rules taking effect next year.

The Competition and Markets Authority took aim at Apple, saying the iPhone maker's tactics hold back innovation by stopping rivals from giving users new features like faster webpage loading. Apple does this by restricting progressive web apps, which don't need to be downloaded from an app store and aren't subject to app store commissions, the report said, The AP reported.

“This technology is not able to fully take off on iOS devices,” the watchdog said in a provisional report on its investigation into mobile browsers that it opened after an initial study concluded that Apple and Google effectively have a chokehold on “mobile ecosystems.”

The CMA's report also found that Apple and Google manipulate the choices given to mobile phone users to make their own browsers “the clearest or easiest option.”

And it said that the a revenue-sharing deal between the two US Big Tech companies “significantly reduces their financial incentives” to compete in mobile browsers on Apple's iOS operating system for iPhones.

Both companies said they will “engage constructively” with the CMA.

Apple said it disagreed with the findings and said it was concerned that the recommendations would undermine user privacy and security.

Google said the openness of its Android mobile operating system “has helped to expand choice, reduce prices and democratize access to smartphones and apps" and that it's “committed to open platforms that empower consumers.”

It's the latest move by regulators on both sides of the Atlantic to crack down on the dominance of Big Tech companies. US federal prosecutors this week unveiled their proposals to force Google to sell off its Chrome browser as they target its monopoly in online search.

The CMA's final report is due by March. The watchdog indicated it would recommend using the UK's new digital competition rulebook set to take effect next year, which includes new powers to rein in tech companies, to prioritize further investigation into Apple’s and Google’s “activities in mobile ecosystems."