The U.S. Federal Trade Commission (FTC) is at a pivotal moment as its current chair, Lina Khan, prepares to step down. Known for her active stance against Big Tech companies, Khan’s departure creates uncertainty about the future of high-profile antitrust investigations into giants such as Microsoft (NASDAQ:MSFT), Alphabet, Amazon, and Meta. These investigations are part of Khan’s broader effort to modernize antitrust enforcement, targeting not only traditional mergers but also strategic partnerships like Microsoft’s significant investment in OpenAI. With the FTC’s leadership transition to Andrew Ferguson under the incoming Trump administration, questions about the agency’s future direction in handling these complex cases are arising.
Andrew Ferguson, who is set to replace Khan, brings his own perspectives to the role. While he has differed from Khan on certain policies, such as the ban on non-compete clauses, he has expressed a commitment to challenging Big Tech’s influence.
“We will end Big Tech’s vendetta against competition and free speech,”
Ferguson stated, signaling his intent to maintain a critical view of the industry. Historically, the FTC has shared antitrust enforcement responsibilities with the Department of Justice, sometimes coordinating efforts to avoid overlap in their investigations. Despite these coordinated efforts, significant challenges remain, as seen in past FTC setbacks like its failed attempt to stop Microsoft’s acquisition of Activision Blizzard.
Microsoft’s Investigation: What Are the Implications?
The FTC recently broadened its investigation into Microsoft, focusing on various aspects of the tech giant’s business, including cloud computing and cybersecurity. This scrutiny partly stems from incidents like the CrowdStrike crash, which underscored the risks of over-reliance on a few key players. Previous reports highlighted potential conflicts of interest within Microsoft’s leadership due to their roles on competing companies’ boards, adding complexity to the FTC’s case. Despite these efforts, past attempts to regulate Microsoft have fallen short, raising questions about whether current investigations will yield different results.
Can Alphabet Navigate Its Antitrust Challenges?
The FTC’s inquiry into Alphabet is particularly focused on its investments in artificial intelligence startups, such as the $2 billion stake in Anthropic.
“Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition,”
Khan remarked. Meanwhile, the Department of Justice has successfully challenged Google (NASDAQ:GOOGL)’s search business practices, leading to a tentative proposal to force the company to divest its Chrome browser. This would mark a significant move against Alphabet, reminiscent of historical antitrust actions.
Amazon is also under the FTC’s microscope, facing a lawsuit alleging monopolistic practices in online retail. The trial is scheduled for 2026, coinciding with additional scrutiny over its investments in Anthropic. While some claims have been dismissed, others remain, leaving the case’s full trajectory unclear. Meta’s antitrust trial, scheduled four months from now, adds to the list of ongoing major cases, reflecting the FTC’s sustained focus on tech giants regardless of leadership changes.
The upcoming shift in the FTC’s leadership introduces uncertainty about the direction of ongoing antitrust probes. As Khan steps down, the future of the commission’s aggressive stance against Big Tech lies in Ferguson’s approach. Companies like Microsoft, Alphabet, Amazon, and Meta continue to face intense scrutiny, but the outcomes of these investigations remain uncertain. Observers will closely watch how Ferguson navigates these complex cases, balancing enforcement with the evolving technological landscape. With significant cases pending, the next few years will likely shape the landscape of tech regulation and its impact on consumer markets.
