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Trump may block Google’s breakup, antitrust legislation likely to take a backseat

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Trump may block Google’s breakup, antitrust legislation likely to take a backseat

Trump has shown a reluctance to break up Google, despite ongoing cases brought up during Biden’s term. His comments have hinted at preferring adjustments that promote fairness rather than dismantling the tech giant entirely

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Trump may block Google's breakup, antitrust legislation likely to take a backseat

While Trump may ease rules around mergers, antitrust action against Big Tech isn’t vanishing completely. Federal Trade Commission (FTC) Chair Lina Khan, known for her tough approach to corporate consolidation, is expected to step down, opening the door for Trump to appoint a Republican majority. Image Credit: Reuters

With Donald Trump gearing up for another term, the tech industry is preparing for a major policy overhaul. Experts predict that Trump may ease some of the aggressive antitrust measures implemented by the Biden administration. One of the key areas of interest? Alphabet’s Google, which has been in the crosshairs over its dominance in online search.

Trump has shown a reluctance to break up Google, despite ongoing cases brought up during Biden’s term. His comments have hinted at preferring adjustments that promote fairness rather than dismantling the tech giant entirely. This change in tone underscores the potential influence Trump will have on the Justice Department’s handling of these cases.

A softer stance on mergers
While Trump may ease rules around mergers, antitrust action against Big Tech isn’t vanishing completely. Federal Trade Commission (FTC) Chair Lina Khan, known for her tough approach to corporate consolidation, is expected to step down, opening the door for Trump to appoint a Republican majority. Likely candidates for acting chair include Andrew Ferguson or Melissa Holyoak, both of whom may bring a more business-friendly focus.

The Justice Department’s antitrust division will also see changes. Biden appointee Jonathan Kanter is expected to leave, allowing Trump to fill these roles with figures who could reshape ongoing cases. Major lawsuits against Amazon, Meta, and Google are likely to continue but could become more settlement-driven under new leadership. Cases against Live Nation and Visa may see similar outcomes.

Revised merger guidelines and noncompete rules
Mergers and acquisitions could get a boost if Trump scraps Biden’s strict 2023 merger guidelines, which were seen as business-unfriendly. This rollback could revive deals where companies address competition concerns by selling parts of their business. Firms like Cigna, Humana, and Qualcomm have held off on mergers, hoping for a more favourable environment.

Trump may also target the FTC’s ban on noncompete clauses, affecting 30 million workers. The rule is under court challenge, and Trump’s new FTC could choose not to defend it, paving the way for its collapse.

Big Tech lawsuits still in play
Despite a friendlier business approach, some antitrust actions will remain. During Trump’s first term, his administration still pursued significant merger cases, so Big Tech won’t get a free pass. Google remains under scrutiny with two major lawsuits — one targeting its search engine practices and another focused on advertising. Remedies proposed by the Justice Department include divesting parts of Google, like Chrome, but a trial isn’t set until 2025, giving Trump room to influence outcomes.

Lina Khan’s initiatives, though praised for taking on corporate power, may face reversals. Critics have argued her policies were overly aggressive, and Trump’s administration could scale back or drop some efforts entirely. The focus is likely to shift to a more balanced regulatory approach.

Trump’s second term is poised to change the tech landscape. While antitrust enforcement won’t disappear, a friendlier attitude toward mergers and a reconsideration of strict policies could reshape Silicon Valley’s future.

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