Donald Trump and Antitrust Policies

By Jody Godoy

(Reuters) – Donald Trump is likely to scale back some antitrust policies enacted under President Joe Biden, especially regarding a potential breakup of Google's dominance in online search, experts suggest.

Trump is expected to continue legal actions against Big Tech from his first term, yet his recent doubts about breaking up Google indicate he will influence how these cases proceed. He stated, "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," at a Chicago event in October.

Currently, the U.S. Department of Justice (DOJ) is pursuing two antitrust cases against Google—one related to search and another concerning advertising technology, alongside a case against Apple. The Federal Trade Commission (FTC) has initiated lawsuits against Meta Platforms and Amazon.

The DOJ has outlined various potential remedies in the search case, including divesting parts of Google’s business and terminating exclusive agreements that make it the default search engine on devices such as the iPhone. However, the trial on these remedies isn’t expected until April 2025, with a ruling likely in August. This timeline allows Trump and the DOJ time to adjust their strategies, according to William Kovacic, a law professor at George Washington University.

Kovacic noted, "He is certainly in the position to control the DOJ’s disposition of the remedies phase," referencing Trump’s ability to influence DOJ decisions. Trump is also likely to retreat from certain policies that have frustrated dealmakers during the Biden era, such as the stalling of company mergers that were common practice before.

Legal experts suggest the FTC and DOJ would likely abandon the merger review guidelines established under Biden, which many on Wall Street viewed as hostile to mergers and acquisitions. Additionally, the FTC's ban on most noncompete clauses in employment contracts could face legal challenges, particularly from the U.S. Chamber of Commerce, if the FTC chooses not to defend it.

Approximately 30 million American workers are affected by noncompete agreements. The FTC is currently appealing a ruling that halted this ban.

Actions aimed at undermining FTC Chair Lina Khan’s initiatives would depend on a Republican majority on the five-member bipartisan commission, confirmed through Trump-appointed members. Khan’s focus on addressing corporate consolidation has garnered both criticism and praise from various political entities.

Despite potential changes, Trump is not anticipated to significantly diminish antitrust enforcement. An analysis reveals that the number of merger cases initiated during his first term was similar to that of the first two years of Biden’s administration.