The U.S. antitrust watchdogs have been cracking down on Big Tech and corporate deal-making during President Joe Biden’s administration. However, experts anticipate a shift in antitrust enforcement under Donald Trump’s second term. It is expected that Trump’s administration will be more lenient on antitrust issues and more open to mergers and deals.
This anticipated change is largely due to the belief that key figures in Biden’s tough stance on antitrust, such as Lina Khan and Jonathan Kanter, will not be part of Trump’s administration. With Elon Musk overseeing an advisory effort focused on reducing government spending, there may be a reduction in staff and regulators overseeing deep-pocketed companies. Additionally, Trump’s nomination of Matt Gaetz as U.S. Attorney General adds more uncertainty to the future of antitrust policies.
While experts predict a shift in antitrust policies, they believe that existing antitrust cases against Big Tech firms are unlikely to be abandoned. The populist concerns about Big Tech’s power and influence are still prevalent, and legal showdowns are expected to continue.
The change in administration could lead to more negotiated settlements and consent decrees with Big Tech companies. The Trump administration is expected to be more open to mergers that promise benefits for consumers, leading to a potential increase in deal flow among tech players.
In the case of the proposed merger between Kroger and Albertsons, which is facing a lawsuit from the FTC, the outcome remains uncertain. The Trump administration’s approach to antitrust issues may impact the fate of this merger and others in the industry.
Deals that were blocked by the Biden administration, such as the partnership between American and JetBlue, may be revisited under Trump’s leadership. Executives are re-evaluating deals that were previously halted due to antitrust concerns, with a possibility of moving forward under the new administration.
As for efforts to dismantle Big Tech monopolies, the first case brought by the Trump administration against Google is awaiting a decision from a federal judge. The Justice Department’s recommended penalties for Google are expected to be finalized soon, regardless of the upcoming change in administration.
Overall, the anticipated shift in antitrust policies under the Trump administration could have significant implications for the tech industry and corporate deal-making. Investors are optimistic about the potential for increased deal flow and more favorable conditions for mergers and acquisitions in the coming months.
