The Significance
The big question is what does this mean for the future of acquisitions for Big Tech?
The DOJ has been examining Apple’s interactions with other tech firms seeking to bring their products and services to the iPhone for years, dating back to the Trump administration. However, competition experts say the fact that the agency is now bringing the case demonstrates that the Biden administration appointees at the DOJ and FTC are pursuing antitrust enforcement more aggressively than any administration in decades.
In addition, a litany of prominent companies, including Epic Games, PayPal, Tile and Spotify, has complained that Apple employs tactics that unfairly disadvantage outside software developers.
However, there is also state support for the federal litigation. In fact, fifteen state attorneys general and the District of Columbia have joined with the DOJ in filing the suit.
Although this is creating headaches for companies, on the flip side it also means an increase in work for firms.
Late last month, we reported that Apple tapped Kirkland & Ellis to represent it in the landmark antitrust lawsuit. The firm has been growing its already substantial competition and markets practice, which is loaded with former government regulators. The practice works closely with Kirkland’s M&A practice, which in 2023 ranked No. 1 for deal value in the Dealogic and London Stock Exchange Group year-end league tables, with the firm advising on 644 transactions worth more than $400 billion globally.
In addition, two Justice Department antitrust leaders have recently joined law firms as they ramp up their antitrust practices to meet demand.
The Information
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The Forecast
For where this might head, we could look at The European Commission’s actions—who has launched five noncompliance probes into American tech giants Apple, Meta and Alphabet—the bloc’s first investigations under its newly-implemented Digital Markets Act.
The Commission’s probes will look into whether Apple and Google-owner Alphabet unfairly favor their own app stores and whether what regulators call Meta’s “pay or consent” subscription model violates the new act.
The European Union’s Digital Markets Act (DMA) is an antitrust law imposing new rules on tech giants classified as “gatekeepers”—for providing a gateway between business users and consumers—to ensure open markets. Could this be foreshadowing on where the U.S. legislation could head?
With this being an election year, things in the antitrust world may see a seismic shift in priorities with a regime change in November. But that may not be calming the nerves of growing Big Tech companies that are currently in regulators' crosshairs.