The Trump administration is pressing forward with antitrust action against major tech companies despite industry hopes for a lighter touch. A federal judge ruled Thursday that Google illegally monopolized online advertising technology, while the Justice Department is pursuing a separate hearing to potentially force Google to sell its Chrome browser. Meanwhile, the FTC opened a trial against Meta over its acquisitions of Instagram in 2012 and WhatsApp in 2014. Trump-appointed enforcers Andrew Ferguson and Gail Slater have pledged aggressive antitrust action, continuing cases largely initiated during Trump’s first term and advanced under Biden.
In-Depth:
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.
Many of these cases, which supported set into motion a new era of antitrust scrutiny, were filed during President 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 Mr. Trump might display technology companies more deference during his second term, as he promised to deregulate industries. Some legal experts consider the administration could still take a lighter hand on blocking mergers and set fewer proactive regulations for tech.
But so far, Mr. Trump’s appointees have promised to continue much of the scrutiny of the largegest tech companies, despite the indusattempt’s hopes.
“I consider that they may not have fully focapplyd on how much the first Trump presidency had to do with setting in motion this re-examination of tech,” stated Bill Kovacic, a former F.T.C. chairman.
Here’s what to know.
Who is in charge of antitrust enforcement now?
Mr. Trump appointed Andrew Ferguson as chair of the F.T.C., which enforces antitrust and consumer protection laws. Mr. Ferguson, a lawyer who spent much of his career working for powerful Republican senators, has stated 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 obtained going,” Mr. Ferguson stated 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 Hoapply during Mr. 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 required for robust antitrust enforcement,” Ms. Slater stated at an event hosted this month by Y Combinator, the Silicon Valley start-up accelerator, which has pushed for more antitrust scrutiny of the tech giants.
Where do the major antitrust lawsuits against the tech giants stand?
Five government cases accapply tech companies of maintaining illegal monopolies, and all are shifting through the courts. The companies deny the allegations.
The F.T.C. sued Meta in 2020, arguing that its acquisitions of Instagram in 2012 and WhatsApp in 2014 violated the law by utilizing what regulators call a “acquire 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’s chief executive, 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 stated it plans to appeal.
The Justice Department accapplyd 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 on Thursday. Google was found to have been a monopolist.
The F.T.C. accapplyd Amazon in a 2023 lawsuit of squeezing compact merchants that apply 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 creates it hard for consumers to ditch their iPhones and iPads. Apple has inquireed a federal judge to dismiss the lawsuit.
What about tech indusattempt mergers and acquisitions?
The Biden administration attempted and failed to block numerous tech deals, including Meta’s purchase of a compact virtual reality start-up, Within. The push to stop acquisitions outraged investors who back compact companies that want to cash out by being acquired by a tech giant.
Mr. Trump’s appointees state they want to obtain out of the way of acquisitions that don’t present a competitive problem. Ms. Slater has expressed an openness to companies’ proposing settlements — such as selling off similar assets — which can support resolve concerns about deals.
In late January, the Justice Department sued to block the business software company Hewlett Packard Enterprise from acquireing Juniper Networks, a networking firm, for $14 billion. It was the first lawsuit to challenge a tech deal in Mr. 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 innotifyigence race?
Last year, the Justice Department and the F.T.C. agreed to divide up responsibility for investigating whether the largegest players in artificial innotifyigence were violating antitrust laws. The Justice Department started investigating Nvidia, while the F.T.C. 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 A.I., including rescinding a Biden-era executive order that put guardrails on the apply of the technology.
The administration has solicited the indusattempt’s input on how best to relocate forward with policy around the technology, an opening that companies and investors took to lobby for fewer rules.
“I consider it is extremely important that we protect competition in the A.I. space, but I consider it is equally important that the government not race to regulate A.I.,” Mr. Ferguson stated on Bloomberg TV in March.
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