Trump’s return to power may have mixed implications for Silicon Valley giants, particularly in the realm of competition enforcement. While there is optimism that his administration may take a softer line on tech competition compared to the Biden era, experts believe that Google may not benefit from this potential shift. The landmark antitrust lawsuit filed against Google during Trump’s presidency alleging monopoly in the online search market is already in progress, and experts suggest that the federal efforts are likely to continue regardless of the change in administration.
The trial for Google’s search monopoly case has already begun, with the federal government arguing that Google used illegal contracts with device makers to promote its products. The cornerstone of the case was an agreement with Apple making Google the default search engine on Apple products. Google’s defense centers around the quality of its products and consumer choice. Despite Google’s arguments, a federal judge ruled against the tech giant, leading to a second trial to determine potential remedies, including the possibility of breaking up the company. Google has pushed back against the government’s requests, stating they “go too far.”
As president, Trump has the authority to influence the DOJ’s approach to cases such as Google’s, but experts believe that actively intervening would be unprecedented and politically risky. Despite Trump’s history of criticism against big tech companies like Google, there are doubts about whether he would go as far as ordering a breakup of the company. The questions surrounding Trump’s antitrust approach are magnified by his strong support from Silicon Valley and his base’s preference for a crackdown on big tech, which may complicate any potential decision regarding Google’s fate.
The lawsuit against Google for its advertising tech business, focusing on claims of illegitimate market abuse, is still ongoing. Google’s acquisition of DoubleClick in 2008 is a key aspect of the case, with the government arguing that it led to higher ad prices. While Google emphasizes competition in the market, the government has presented its case, with closing arguments scheduled for November. Despite the unresolved nature of this lawsuit, the possibility of a breakup for Google remains on the table, with experts seeing it as a negotiation tactic to push for less extreme measures.
The appointment of Gail Slater, an aide of Vice President-elect JD Vance, to advise Trump’s transition team on antitrust policy signals a potential shift in approach to tech competition. Slater’s previous roles in the tech industry may influence Trump’s decisions regarding Google and other tech giants. The dynamics of antitrust policies under the new administration, coupled with ongoing legal battles, suggest that the fate of Google and its potential breakup will continue to be a topic of significant interest and speculation in the tech industry. The upcoming trial in April will shed light on the next steps in the case against Google’s alleged monopolistic practices.
