Trump’s Potential Shift in US Antitrust Policy Raises Questions for Big Tech and Mergers

As Donald Trump prepares for a return to the White House, experts suggest his administration may adjust several antitrust policies instituted under President Joe Biden, potentially reshaping the landscape for Big Tech and corporate mergers. Among the most significant shifts might be a reconsideration of the Justice Department’s efforts to break up Alphabet’s Google, according to Reuters.

Trump, who initiated several antitrust cases against technology giants during his previous term, is expected to keep the momentum on certain actions. However, recent remarks reflect a cautious stance toward breaking up Google. Speaking at an event in Chicago in October, Trump questioned whether such a breakup would harm the company’s overall structure. “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, per Reuters. This perspective signals a potential moderation in the scope of his antitrust approach.

Currently, the U.S. Department of Justice (DOJ) is involved in two major cases against Google—one targeting its dominance in online search, the other focused on its advertising technology. According to Reuters, the agency has proposed significant remedies, such as forcing Google to divest parts of its business, including the Chrome browser, and ending agreements that make Google the default search engine on devices like the iPhone. The timeline for these cases, however, could extend well into 2025, offering a Trump-led DOJ time to alter or reshape the remedies proposed by the Biden administration, noted William Kovacic, a former Federal Trade Commission (FTC) chair under George W. Bush.

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Antitrust enforcement has been a contentious area in recent years, with Biden’s administration pursuing robust measures against major players. The FTC is currently litigating against Meta Platforms and Amazon on grounds of monopolistic practices. The Biden administration’s antitrust policy has also aimed at more stringent regulations on mergers and acquisitions, reducing opportunities for corporations to sidestep competition issues through negotiated settlements. According to Jon Dubrow, a partner at McDermott Will & Emery, Trump could revoke the 2023 merger guidelines, which were crafted to heighten scrutiny on mergers. “The 2023 merger guidelines were very hostile to mergers and acquisitions,” he told Reuters, reflecting a sentiment widely shared by Wall Street.

Another area that may see significant change under Trump involves employment agreements, specifically the FTC’s ban on most noncompete clauses. Approximately 20% of U.S. workers, or about 30 million people, are currently bound by noncompete agreements. If the FTC elects not to defend this ban in court, it could leave such agreements open to challenge by entities like the U.S. Chamber of Commerce, per Reuters.

Nonetheless, antitrust enforcement may not disappear under a Trump administration. In his previous term, Trump pursued nearly as many merger cases as Biden has during his first two years, according to Sheppard Mullin law firm. Though Trump may dial back certain policies, experts say he could still pursue substantial antitrust cases, especially as public support grows for regulating Big Tech and maintaining competitive markets.

The future of the FTC is also under the spotlight, as any significant shifts would depend on changes in its leadership. If confirmed, a Trump-appointed FTC chair could tip the bipartisan commission toward a Republican majority, potentially redirecting the agency’s focus. Current FTC Chair Lina Khan has been lauded for her efforts to tackle corporate consolidation, which she believes harms the broader public interest. While her approach has drawn bipartisan praise, including from some Republicans such as Vice President-elect JD Vance, it has also faced criticism within business circles as overly aggressive, according to Reuters.

Source: Reuters