Technology industry leaders are closely monitoring the upcoming presidential election, with 74% of them believing the outcome will have a significant impact on their company’s ability to stay ahead of global competitors, according to a recent EY survey. answered.
The risks are particularly high for big tech companies, which have come under increasing regulatory scrutiny in Washington state in recent years amid concerns that they have too much power.
“I think the industry is very interested in what happens with the next administration, especially from an antitrust perspective,” James Brundage, EY’s global and Americas technology sector leader, said in an interview. Ta.
Google, Apple, Amazon, and Meta all face legal battles with the federal government over alleged monopolistic practices.
Analysts say the cases reflect a major shift under President Joe Biden to more aggressive antitrust enforcement at both the Federal Trade Commission and the U.S. Department of Justice.
“Antitrust law is currently at an all-time high,” Will Liebman, an M&A lawyer at law firm Dykema Gossett, said in an interview.
In addition to scrutinizing the business practices of big tech companies, antitrust regulators are also monitoring investment activities such as the emerging field of artificial intelligence.
In January, the FTC announced that it had ordered Microsoft, Alphabet, Amazon, OpenAI, and Anthropic to provide information about recent investments and partnerships involving generative AI companies and large cloud service providers.
Analysts say business leaders are still struggling to predict what the regulatory environment will look like after the Nov. 5 presidential election.
Former President Donald Trump, the Republican candidate, and Vice President Kamala Harris, the Democratic candidate, have both focused their campaigns on economic issues, but their policies also focus on antitrust enforcement, artificial intelligence, cybersecurity, and privacy. It is unclear what impact this will have on high-tech companies in key areas such as said Brundage.
“There’s a lot of uncertainty about how things are going to play out,” he said, adding: “It’s been an unusual election cycle, especially with Harris coming into office so late.”
Although Mr. Trump is generally in favor of deregulation, both he and his running mate, J.D. Vance (R-Ohio), have criticized big tech companies. What exactly this means from an antitrust policy perspective for President Trump’s second term is unclear.
In a recent interview at the Chicago Economic Club, President Trump said the Biden administration’s efforts to break up Google will continue, citing concerns about how it would affect the United States’ ability to compete on the international stage with China and others. declined to say whether. However, he revealed that he was “not a fan” of the company, saying, “They treat me badly.”
Meanwhile, analysts say it remains to be seen how a Harris presidency will affect Biden’s antitrust legacy, given his mixed messages during the campaign. It is said to be equally difficult.
As part of her economic plan, Harris said she would enact the first federal law banning price gouging by food suppliers and grocery stores. At a campaign event in Pittsburgh, Pennsylvania, last month, he said companies need to “play by the rules, respect worker and union rights, and abide by fair competition.”
“If they don’t do that, I will hold them accountable,” she said, according to a transcript of her remarks. At the same time, she described herself as a “capitalist” who believes in “free and fair markets.”
“Both sides are currently busy touting how their policies will drive economic activity over the next four years,” Liebman said. From a business perspective, “it’s hard to say frankly which side is better.”
Robin Adelstein, global head of antitrust and competition at law firm Norton Rose, said that despite Harris being a member of the current administration, Harris is at least superficially vulnerable, especially given her ties to the tech industry. As president, he may choose a softer antitrust approach. Fulbright.
“Harris is likely to face pressure from her own party if she withdraws support for the Biden administration’s aggressive antitrust efforts, a development that is actually expected if she wins.” It’s more of a subtle shift in focus than a radical policy. It’s a shift in direction,” Adelstein said during a virtual roundtable last month.
