Big Tech’s Troubles

Yesterday, the Justice Department asked a federal judge to break up Google. The judge had already declared that the company has a monopoly in online search, and the government argues that the solution is to take apart one of the biggest corporations in the world.

The government’s position reflects its increasingly aggressive approach toward Big Tech. In a separate case on Thursday, a federal judge ruled that Google had acted illegally to maintain a monopoly in online advertising. And a federal trial against Meta, the owner of Facebook and Instagram, began last week. Mark Zuckerberg and Sheryl Sandberg took the stand to defend the company, and more executives are expected to testify in the coming months.

Not so long ago, Washington was smitten with Silicon Valley. But then tech companies consolidated power, and lawmakers grew skeptical. Over time, members of both parties decided they had to dismantle what they felt were monopolies.

Now Big Tech faces two important issues in these cases: a broader policy debate over monopolies, and President Trump’s personal feelings toward the companies. Today’s newsletter explains both.

Bigger business

First, the policy debate. The federal lawsuits argue that tech companies use their size to stifle competition. (My colleague David McCabe broke down the major cases here.)

Exhibit A: Google’s handling of online search. The company has made itself the default search option on its products, such as the Chrome web browser and the Android operating system. It also pays Apple and others to use its search engine as the default on their phones.