DStv Channel 403 Saturday, 02 November 2024

After long peace, Big Tech faces US antitrust reckoning

WASHINGTON - After more than a decade of leaving Big Tech largely to itself, US antitrust enforcers have cranked up the heat, with several high-profile cases underway that could radically change the way the industry's giants do business.

Launched under both the Trump and Biden administrations, five major cases from the Federal Trade Commission (FTC) and the Department of Justice (DOJ) are moving forward against major US technology companies -- including two against Google that could see the company split up.

The most recent came in March against Apple by the FTC, which alleges the iPhone maker abuses its dominance of the premium smartphone sector.

Washington had largely remained silent on Big Tech cases since its wars with Microsoft that began in the 1990s and ended in a settlement in the early 2000s, after a bruising battle with the DOJ.

Inspired by moves in Europe and elsewhere, the new generation of cases allege that the practices of tech giants including Amazon and Meta stifle competition, harm consumers, and warrant significant changes in business operations.

The cases are on different timelines, before different federal judges and are based on a wide variety of allegations. With appeals, the lawsuits could drag on as long as a decade.

The first case in the campaign, launched in 2020 against Google over its search engine, could have an initial decision as early as the end of this year.

US Assistant Attorney General for the Antitrust Division of the Department of Justice Jonathan Kanter speaks at the "Enforcers' Roundtable" panel at the American Bar Association's 2024 antitrust spring meeting in Washington, on April 12, 2024
AFP | Bastien INZAURRALDE

In the second Google case, also brought by the DOJ, the company is targeted for its dominance of the digital advertising sector. Amazon and Meta meanwhile face cases with the FTC.

The suits have drawn applause from lawmakers, with frustration over the power of big tech companies running high with the public. 

But many in the business community and legal profession have balked, seeing the lawsuits as legally thin or politically motivated.

The heads of the FTC and the DOJ's antitrust section adamantly stand by their cases, seeing their mission as a means to protect consumers.

In its latest tech-related decision, last month the EU hit Apple with a 1.8-billion-euro fine ($1.9 billion) for preventing music streaming services from offering subscription options outside of its App Store.

Paid Content