Politics

/

ArcaMax

Silicon Valley tech giants cozied up to Trump -- his administration is still suing them

Ethan Baron, The Mercury News on

Published in Political News

With Republican President Donald Trump’s return to office this year, Big Tech leaders from Silicon Valley’s largest companies — all fighting federal anti-monopoly lawsuits launched under Trump’s previous term and the Democratic Biden administration that followed — have made unprecedented peace offerings.

Google CEO Sundar Pichai, Meta CEO Mark Zuckerberg, and Apple CEO Tim Cook sat behind Trump on his inauguration stage in January. Google and Meta, and Cook personally, donated $1 million each to his inauguration committee. Google and Meta have retreated from diversity programs and social media content moderation that the president has criticized.

But so far, the Trump administration is still using antitrust law to pursue anti-monopoly actions against the three companies and against Amazon, based in Washington state, which also backed off from diversity efforts and donated $1 million to Trump’s inauguration, where its executive chairman Jeff Bezos sat on stage beside Pichai.

“I have been encouraged that the administration has not fallen into the predictable pattern of prior Republican administrations taking a hands-off approach,” said Stanford Law School professor Mark Lemley, who teaches antitrust law.

“It remains to be seen whether some of the tech billionaires sucking up to Trump, particularly Zuckerberg and Bezos, will persuade him to overrule his antitrust heads and drop their cases,” Lemley said, but he added “there are a number of indications that the Trump administration may continue aggressive antitrust enforcement, particularly against big tech.”

In a signal earlier this month that the legal actions targeting Silicon Valley may keep moving ahead in the second Trump administration, the U.S. Department of Justice repeated its demand, made under former President Joe Biden in November, that Google sell off its hugely popular and valuable Chrome internet browser.

“These cases are immensely consequential for these companies,” said Sam Weinstein, a former U.S. Department of Justice antitrust lawyer and University of California-Berkeley law school fellow, now a professor at the Cardozo School of Law in New York City. “Google and Meta face the possibility of being broken up.”

Changes sought by the government in the Apple lawsuit appear “less of an existential threat,” Weinstein said, “but it would still be a significant loss for the company.” Amazon’s business model and structure are also at risk, he added.

In 2020, the Justice Department sued Google over its internet search apps and related advertising, alleging deals it made with companies, including device manufacturers like Apple and wireless carriers like AT&T were intended to maintain a monopoly that strips choice from consumers.

Google in a 2023 blog post called the lawsuit “deeply flawed,” arguing that “people don’t use Google because they have to — they use it because they want to.” In August, Washington, D.C., federal court Judge Amit Mehta ruled “Google is a monopolist.” Mehta will weigh the Justice Department’s demand to force a sale of Chrome. Evidentiary hearings are to start April 21.

In 2023, the Justice Department again sued Google, claiming the Mountain View digital-advertising giant holds a monopoly on software that puts ads on web pages. Google in a 2023 court filing denied it has such a monopoly and said in a September blog post, “We already go above and beyond legal requirements in making tools that others can use.”

 

The Justice Department’s lawsuit against Apple claimed the Cupertino iPhone titan “illegally maintains a monopoly over smartphones” through conduct making it harder for consumers to switch to other companies’ devices. The lawsuit asked the court to limit Apple’s control over app distribution and bar contracts with third parties that support an alleged monopoly.

Apple in an August court filing claimed the lawsuit was “based on the false premise that iPhone’s success has come not through building a superior product that consumers trust and love, but through Apple’s intentional degradation of iPhone to block purported competitive threats.”

The U.S. Federal Trade Commission’s 2020 lawsuit against Meta’s Facebook alleged the Menlo Park social media behemoth holds a monopoly it has protected via purchase of budding rival Instagram in 2012 and messaging app WhatsApp two years later. That case in Washington, D.C., federal court is scheduled for trial April 14, with Meta CEO Zuckerberg set to testify.

The FTC in a 2021 court filing demanded Meta be ordered to sell or “reconstruct” Instagram and WhatsApp. Meta this week told this news organization it was confident that “evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers,” and that the FTC action shows “businesses can be punished for innovating.”

Amazon, accused by the FTC in a 2023 lawsuit of “exclusionary conduct that prevents current competitors from growing and new competitors from emerging,” said in a court filing last year that its matching of rivals’ discounts, recommendations of competitively priced offers, and fast, reliable shipping are “commonplace” and promote competition.

As the cases progress, many eyes are on Trump’s nominee to lead the Justice Department antitrust division, Gail Slater. She is a former FTC lawyer and former head attorney for a now-defunct Big Tech lobby group, and was confirmed March 11 by the U.S. Senate to head the department. In written responses to Senate questions before her confirmation, Slater said she would prioritize anti-monopoly enforcement against Big Tech.

The FTC declined this week to say whether it was committed to its antitrust cases, and the Justice Department did not respond to questions.

Should federal agencies drop antitrust cases against the tech firms, co-plaintiff state attorneys general in the Apple, Google and Amazon cases could keep the lawsuits alive. But, said Stanford’s Lemley, courts would be less likely to force major structural changes on the companies, and some Republican-led states could drop out.

How important the cases are to the Trump administration is an open question, Weinstein said.

“The list of things that are on the administration’s mind is very long,” Weinstein said, “and antitrust might be very far down to the bottom.”


©#YR@ MediaNews Group, Inc. Visit at mercurynews.com. Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus

 

Related Channels

ACLU

ACLU

By The ACLU
Amy Goodman

Amy Goodman

By Amy Goodman
Armstrong Williams

Armstrong Williams

By Armstrong Williams
Austin Bay

Austin Bay

By Austin Bay
Ben Shapiro

Ben Shapiro

By Ben Shapiro
Betsy McCaughey

Betsy McCaughey

By Betsy McCaughey
Bill Press

Bill Press

By Bill Press
Bonnie Jean Feldkamp

Bonnie Jean Feldkamp

By Bonnie Jean Feldkamp
Cal Thomas

Cal Thomas

By Cal Thomas
Christine Flowers

Christine Flowers

By Christine Flowers
Clarence Page

Clarence Page

By Clarence Page
Danny Tyree

Danny Tyree

By Danny Tyree
David Harsanyi

David Harsanyi

By David Harsanyi
Debra Saunders

Debra Saunders

By Debra Saunders
Dennis Prager

Dennis Prager

By Dennis Prager
Dick Polman

Dick Polman

By Dick Polman
Erick Erickson

Erick Erickson

By Erick Erickson
Froma Harrop

Froma Harrop

By Froma Harrop
Jacob Sullum

Jacob Sullum

By Jacob Sullum
Jamie Stiehm

Jamie Stiehm

By Jamie Stiehm
Jeff Robbins

Jeff Robbins

By Jeff Robbins
Jessica Johnson

Jessica Johnson

By Jessica Johnson
Jim Hightower

Jim Hightower

By Jim Hightower
Joe Conason

Joe Conason

By Joe Conason
Joe Guzzardi

Joe Guzzardi

By Joe Guzzardi
John Micek

John Micek

By John Micek
John Stossel

John Stossel

By John Stossel
Josh Hammer

Josh Hammer

By Josh Hammer
Judge Andrew Napolitano

Judge Andrew Napolitano

By Judge Andrew P. Napolitano
Laura Hollis

Laura Hollis

By Laura Hollis
Marc Munroe Dion

Marc Munroe Dion

By Marc Munroe Dion
Michael Barone

Michael Barone

By Michael Barone
Michael Reagan

Michael Reagan

By Michael Reagan
Mona Charen

Mona Charen

By Mona Charen
Oliver North and David L. Goetsch

Oliver North and David L. Goetsch

By Oliver North and David L. Goetsch
R. Emmett Tyrrell

R. Emmett Tyrrell

By R. Emmett Tyrrell
Rachel Marsden

Rachel Marsden

By Rachel Marsden
Rich Lowry

Rich Lowry

By Rich Lowry
Robert B. Reich

Robert B. Reich

By Robert B. Reich
Ruben Navarrett Jr

Ruben Navarrett Jr

By Ruben Navarrett Jr.
Ruth Marcus

Ruth Marcus

By Ruth Marcus
S.E. Cupp

S.E. Cupp

By S.E. Cupp
Salena Zito

Salena Zito

By Salena Zito
Star Parker

Star Parker

By Star Parker
Stephen Moore

Stephen Moore

By Stephen Moore
Susan Estrich

Susan Estrich

By Susan Estrich
Ted Rall

Ted Rall

By Ted Rall
Terence P. Jeffrey

Terence P. Jeffrey

By Terence P. Jeffrey
Tim Graham

Tim Graham

By Tim Graham
Tom Purcell

Tom Purcell

By Tom Purcell
Veronique de Rugy

Veronique de Rugy

By Veronique de Rugy
Victor Joecks

Victor Joecks

By Victor Joecks
Wayne Allyn Root

Wayne Allyn Root

By Wayne Allyn Root

Comics

Chip Bok David Fitzsimmons Randy Enos Ed Gamble Mike Luckovich David M. Hitch