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Trump’s big tech war: What antitrust cases mean for Google, Meta, Apple and the Future of AI | Explained

Trump’s big tech war: What antitrust cases mean for Google, Meta, Apple and the Future of AI | Explained

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World: Tech investors in Silicon Valley and on Wall Street had hoped Trump would ease regulations in his second term, with many expecting a lighter touch on mergers and fewer rules. But so far, Trump’s new team has signalled otherwise.

The Trump administration is pushing forward with major antitrust cases against Big Tech, showing no signs of backing down, despite expectations that a second Trump term might ease pressure on the industry.

On Monday, the Federal Trade Commission (FTC) is set to go head-to-head with Meta in court, accusing the company of stifling competition by buying up Instagram and WhatsApp. Later this month, on 21 April, the Justice Department will argue that Google should be forced to sell its Chrome browser to limit its dominance in search.

Both lawsuits were first filed during Trump’s initial presidency and have been supported by the Biden administration, which also brought monopoly cases against Amazon, Apple, and Google’s ad tech business.

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Tech investors in Silicon Valley and on Wall Street had hoped Trump would ease regulations in his second term, with many expecting a lighter touch on mergers and fewer rules. But so far, Trump’s new team has signalled otherwise.

“They may not have fully focused on how much the first Trump presidency had to do with setting in motion this re-examination of tech,” said former FTC chairman Bill Kovacic.

Where do the lawsuits stand?

Currently, five major government cases are in motion against the tech giants:

  • Meta is on trial over its acquisitions of Instagram and WhatsApp, which the FTC claims were part of a “buy or bury” strategy to eliminate rivals. The trial is expected to run through July and include testimony from CEO Mark Zuckerberg.
  • Google is facing two lawsuits. One accuses it of running a monopoly in search. A judge has already sided with the government, and a hearing will be held later this month on how to rein in the company. The DOJ wants Google to sell Chrome, while Google has offered lighter alternatives and plans to appeal. The second case focuses on Google's ad business, with a court decision expected soon.
  • Amazon is being sued by the FTC for allegedly putting pressure on smaller sellers on its marketplace. The case is set for trial next year.
  • Apple is fighting a DOJ lawsuit that claims its ecosystem makes it too difficult for users to leave its devices. The company has asked for the case to be thrown out.
  • Artificial intelligence is also on the radar. The DOJ and FTC agreed last year to split responsibility for policing the sector. The DOJ is looking into Nvidia, while the FTC is examining Microsoft and its partnership with OpenAI.

Trump appointed Andrew Ferguson as chair of the FTC, responsible for enforcing antitrust and consumer protection laws. Ferguson, who previously worked with top Republican senators, has pledged to go hard on Big Tech.

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

“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,” he told Bloomberg TV in March.

At the Justice Department, Gail Slater now leads the antitrust division. A seasoned lawyer with a background in tech and media, she also served in the White House during Trump’s first term.

“It’s now a bipartisan issue, and there’s a consensus around the need for robust antitrust enforcement,” she said at a recent event hosted by start-up accelerator Y Combinator.

About the Author

Prapti Upadhayay

Prapti Upadhayay is a New Delhi-based journalist who reports on key news developments across India and global affairs, with a special focus on US politics. When not writing, she en...Read More