In a departure from previous administrations, the Biden administration has pursued a robust antitrust strategy, initiating numerous lawsuits with the aim of breaking up large companies and preventing mergers, though success has been varied.
Since President Biden’s inauguration in January 2021, the administration, through either the Federal Trade Commission (FTC) or the Department of Justice (DOJ), has aggressively targeted a range of industries, including tech giants like Google and Microsoft, as well as airlines and e-commerce entities. This crackdown has sparked debates among conservatives, with some asserting that it will foster competition and benefit consumers, while others argue it may impede legitimate business operations, compromising viability and consumer experiences.
Jennifer Huddleston, a technology policy research fellow at the Cato Institute, highlighted a shift away from traditional presumptions based on the consumer welfare standard. This legal principle emphasizes that antitrust actions should prioritize consumer welfare over impacts on competitors or overall competition.
Recent developments include the termination of Amazon’s proposed acquisition of iRobot due to regulatory hurdles imposed by the FTC and European regulators, leading to a significant layoff at iRobot. Additionally, a federal judge blocked JetBlue Airways’ $3.8 billion acquisition of Spirit Airlines in response to a DOJ antitrust suit. Critics argue that the Biden administration’s aggressive antitrust approach neglects the potential pro-competitive benefits of mergers, hindering efficiency and innovation.
Supporters of the administration’s efforts point to the monopolistic control wielded by large tech companies over information distribution. Advocates argue that companies like Google have too much influence over what users can view through their search engines, and social media platforms, such as Twitter, have been criticized for censoring users.
Mike Davis, founder and president of the Internet Accountability Project, emphasized the need for enforcement of antitrust laws against Big Tech monopolies, asserting that they possess excessive power over information and commerce. Despite opposition, the DOJ has taken action against Google, alleging a monopoly in search and advertising markets.
In less publicized cases, the FTC has targeted pharmaceutical companies in line with President Biden’s push to lower drug prices. The agency has secured court victories, claiming these wins directly benefit consumers by reducing healthcare and prescription drug costs.
Despite these actions, concerns linger regarding the potential chilling effect on mergers and acquisitions. Increased regulatory scrutiny may lead companies to hesitate, impacting consumers and small businesses. The DOJ did not respond to requests for comments on these developments.
