Navigating Big Tech in Today’s Age of Antitrust Enforcement
By: Allen Masi
In the last year, the United States government has brought antitrust cases against multiple large technology companies.[1] Google, Meta, Apple, and Microsoft have all been under the lens of the federal government.[2] Experts have predicted that 2024 could be a very active year for antitrust enforcers.[3] It is clear that the U.S. government has been paying particular attention to these big technology companies recently. What does this mean for these technology companies and how could possible future action have an impact on consumers?
The recent scrutiny of big tech is driven by concern over their power and control over consumers.[4] Under the Biden Administration, nearly all the “top” big tech companies have been involved in litigation with the federal government.[5] In these times, big tech companies find themselves navigating regulations and public perception. Antitrust laws are designed to promote fair competition and prevent monopolies and other behavior that could harm consumers or stifle innovation.[6] Some of the key issues that are focal points driving scrutiny in the tech industry are market dominance, data privacy, and monopolistic behavior.
Over the past few decades, big tech companies like Google, Meta, Apple, and Microsoft have transformed their industries and fundamentally changed the way we interact with technology and others. One example lawmakers have pointed out is the massive amounts of data these companies have and how they use it against rival companies to harm their competition.[7]
Facebook’s CEO Mark Zuckerberg recently defended his company’s data practices and stated that it amounted to “nothing more than basic market research.”[8] In the United States, Antitrust laws are enforced by lawsuits and the court system. So, lawmakers who have issues with these corporations’ actions need either the Department of Justice or the Federal Trade Commission to act. Recently, regulators around the world have increased their attention on big tech firms, digging into their business practices and market dominance.[9] Big tech companies have responded that their practices do not harm competition or give them an unfair advantage in the markets.[10] For example, Google argued that “just because they are big doesn’t mean what they are doing is illegal.”
In conclusion, navigating the complexities of big tech during today’s heightened antitrust enforcement is not going to be easy for tech firms or regulators. I would expect regulators to continue to scrutinize big tech on their concerns over market dominance, data privacy, and monopolistic behavior. Antitrust regulators have an interest in protecting consumer interests, fostering innovation and effective enforcement is likely the path forward. It will be fascinating to see how this plays out over the coming months and how big tech companies react to the increased scrutiny they face.
Image Source: https://theconversation.com/why-are-apple-amazon-google-and-meta-facing-antitrust-lawsuits-and-huge-fines-and-will-it-protect-consumers-221501
[1] Blair Levin & Larry Downes, Microsoft, Google, and A New Era of Antitrust, Harvard Business Review (2023), https://hbr.org/2023/02/microsoft-google-and-a-new-era-of-antitrust.
[2] Jan Wolfe, Big Tech Braces for Wave of Antitrust Rulings in 2024, The Wall Street Journal (Jan. 1, 2024) https://www.wsj.com/tech/big-tech-braces-for-wave-of-antitrust-rulings-in2024-860f0149.
[3] Id.
[4] Max Zahn, Why is the Biden Administration going after Big Tech? abc news network (Mar. 22, 2024). https://abcnews.go.com/Business/biden-administration-after-big tech/story?id=108385698.
[5] Id.
[6] Guide to antitrust laws (2022), https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws.
[7] Brian Fung, “Near-Perfect Market Intelligence”: Why A house report says Big Tech monopolies are uniquely powerful, cnn (Oct. 10, 2020), https://www.cnn.com/2020/10/10/tech/apple-amazon-facebook-amazon-monopoly-data/index.html.
[8] Id.
[9] Ryan Bourne, Big Tech Antitrust, Cato Institute (2022), https://www.cato.org/cato-handbook-policymakers/cato-handbook-policymakers-9th-edition-2022/big-tech-antitrust#conclusion.
[10] Mark McCareins, Big Tech Takes the Stand, Kellogg Insight (Oct. 5, 2023), https://insight.kellogg.northwestern.edu/article/big-tech-google-antitrust.