As the tech giant gears up to defend itself against regulatory scrutiny, Google is in the process of hiring a team of former lawyers from the Department of Justice itself, The Washington Post reports.
In a pair of pending lawsuits, the Department of Justice aims to break up Google's dominant position in the search engine market. Meanwhile, the Federal Trade Commission (FTC) challenges other Big Tech companies, such as Facebook parent company Meta and Microsoft. And it appears that the industry is winning so far.
Curtailing Big Tech Influence
The Biden administration is eager to reduce the impact of tech giants like Google, Apple, Facebook, and Amazon on the digital economy. In fact, President Biden prioritized antitrust as soon as he took office in early 2021.
According to a joint report from the Federal Trade Commission and the DOJ antitrust division, a chartbuster of 3,520 transactions underwent antitrust review in 2021, a 115% increase from 1,637 in the fiscal year 2020.
Additionally, the administration's attempts to rein in Big Tech have shifted from Congress to the country's courtrooms as regulatory agencies prepare for a battle against Google and other major tech companies.
Some of these measures would prohibit companies like Google from using their platforms to promote their own products or from restricting consumers from competing services. The future of such legislation is uncertain, given the industry's lobbying campaign that prevented it from becoming law.
Despite this, the antitrust package faces obstacles due to the intense lobbying of tech players.
Google's Ad Empire Under Scrutiny
A lawsuit brought by the Department of Justice and eight states seeks to dismantle Google's lucrative ad business, while a 2020 lawsuit brought by former President Trump alleges that online search has been monopolized and will go to trial later this year.
The DOJ's lawsuit, the second against Google in the last two years, claims that the tech juggernaut is illegally leveraging its position to acquire so-called "high-tech tools used by publishers, advertisers, and brokers" to power its ad empire and stifle competition.
Blocking Mergers and Acquisitions
The Federal Trade Commission (FTC) is pursuing lawsuits against Meta, the parent company of Facebook, and other tech companies to prevent mergers and acquisitions that they believe could hurt competition.
The agency is also attempting to rewrite federal antitrust enforcement regulations, arguing that the current rules are too narrow and do not adequately address the challenges posed by Big Tech.
In response, the industry is lobbying against antitrust legislation and hiring lawyers to prep for legal disputes. Google has dismissed the allegations made by the DOJ and vowed to defend itself in court. Facebook, Meta, and other tech companies have also resisted regulatory efforts to break up their businesses.
Microsoft plans to fight the Federal Trade Commission's (FTC) decision to block its $75 billion bid for Activision Blizzard. The company will most likely use its position as an industry underdog as an argument.
Meanwhile, The FTC's fight against tech giants recently hit a roadblock when Meta successfully acquired Within, a developer of virtual reality (VR) workout apps.
The withdrawal of the FTC from the case represents a significant setback for the agency under the leadership of Lina Khan, a notable critic of Big Tech.
Opinions differ on the probable outcome of these legal battles. The courts may be receptive to new antitrust arguments, especially in light of growing concerns regarding the influence of Big Tech. Others contend that judges may not be persuaded if new legislation is not passed to support the theories of the antitrust agenda.
Stay posted here at Tech Times.
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