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Big Tech antitrust cases to continue, though approach may
soften
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Trump expected to ax policies criticized by business
groups
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FTC has Democratic majority until Lina Khan replaced
By Jody Godoy
Nov 6 (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.
The U.S. 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 ( AAPL )
. The U.S. Federal Trade Commission is suing Meta
Platforms ( META ) and Amazon.com ( AMZN ).
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 ( AAPL )
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 U.S. Chamber of Commerce, if the FTC
votes not to defend it.
About 30 million people, or 20% of U.S. 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.