Trump Administration Expected to Rethink Biden’s Big Tech Antitrust Policies
As Donald Trump nears a potential second term, legal experts suggest he may ease some of the aggressive antitrust strategies pursued under President Joe Biden, specifically in cases against major technology companies. While Trump is likely to continue some cases against Big Tech, his recent remarks suggest a more measured approach—particularly regarding a possible breakup of Google’s parent company, Alphabet, over its dominance in online search.
Trump’s Stance on Big Tech Cases
During a recent event in Chicago, Trump expressed reservations about dismantling Google, stating, “If you do that, are you going to destroy the company? What you can do without breaking it up is ensure it’s more fair.” This stance reflects a departure from the Biden administration’s more active approach, which has pursued antitrust cases against Google, Apple, Meta, and Amazon.
Currently, the Department of Justice (DOJ) is involved in two major antitrust cases against Google—one focused on its search practices and the other on alleged monopolistic practices in advertising technology. Potential remedies include requiring Google to divest assets like its Chrome browser and ending agreements that make it the default search engine on devices such as Apple’s iPhone. However, a ruling on these remedies is not expected until mid-2025, providing a potential Trump administration time to reassess its stance on Big Tech regulation.
Potential Changes in Merger Policy
Beyond Big Tech, a Trump administration could ease policies that have complicated mergers under Biden. Trump may roll back guidelines set by the Federal Trade Commission (FTC) and DOJ, which have been particularly stringent on mergers and acquisitions. These guidelines, which have faced Wall Street criticism, reflect a more combative stance toward mergers.
“The 2023 merger guidelines were very hostile to mergers and acquisitions,” noted Jon Dubrow, a partner at McDermott Will & Emery. Experts suggest that Trump’s administration may favor settlements that allow companies to address competition concerns by divesting parts of their business rather than blocking mergers outright.
Impact on Employment Policies
The Biden administration’s FTC introduced a sweeping ban on most noncompete clauses, affecting approximately 30 million American workers. This policy is under legal challenge from the U.S. Chamber of Commerce. Experts predict a Trump-appointed FTC may not defend this ban, potentially reshaping the employment landscape for millions of Americans and raising questions about labor rights and job security.
Shifting Leadership and Lina Khan’s FTC Policies
If Trump appoints a new FTC chair, a strategic shift away from current Chair Lina Khan’s initiatives is likely. Khan’s efforts, focused on addressing societal harms from corporate consolidation, have drawn support from some Democrats and Republicans. However, critics argue that her approach is overly aggressive. A Trump-led FTC could adopt a more business-friendly perspective, focusing on market fairness rather than aggressive corporate breakups.
A Balanced Approach to Antitrust Enforcement
Despite potential shifts, Trump is not expected to completely abandon antitrust enforcement. Data from Sheppard Mullin law firm shows a similar number of merger cases were pursued during Trump’s first term as in the early years of Biden’s administration. Thus, while Trump’s approach may be less aggressive, scrutiny of corporate consolidation is expected to continue.
With the potential to influence the DOJ and FTC, a Trump administration could forge a distinctive approach to regulating Big Tech and corporate mergers, balancing business growth with fair competition in the market.