Big Tech breathes a sigh of relief: fears of antitrust pressures decrease

Big Tech breathe a sigh of relief: fears of antitrust pressure drop - Big Tech usa election 1024x576Le Facebook shares increase by 8%, while Google grows by 6% as Amazon and Apple is up by 4%, after the first results of the US presidential election.

A big Wednesday for Big Tech

With the US election results hinting at a strongly divided government, fears of a Democrat-led antitrust outlook were allayed, sending Big Tech stocks sharply up during Wednesday's session.

Shares of Google were close to all-time highs and were keeping up with the largest percentage increase since April 29, when they rose 8,89%, according to the Dow Jones Market Data.

The high-tech Nasdaq Composite Index (COMP) rose by nearly 4%. "Facebook and Google are the biggest winners on this front, followed by Amazon," Evercore ISI analyst Benjamin Black said in a statement Wednesday.

Fear of anti-trust pressure from Democrats

Legal experts speculated that democratic scrutiny of the White House, Senate and House of Representatives would speed up the antitrust investigation already underway against Google - cited last month by the Justice Department for its search engine activity - as well as Amazon. and Apple.

The Federal Trade Commission is expected to take action against Facebook as early as this year. Anthony Sabino, a law professor at St. John's University, predicted a "flood of investigations in the Senate, with parallel proceedings in the House, and a call for stronger antitrust laws - some so oppressive that they could even hinder the tech sector."

However, the odds of that happening seem to thin out with Republicans holding a slight edge. Leading the Democrats will be a former presidential candidate who called for the breakup of Facebook and Google, a House member who led antitrust hearings on technology last year, and an East Coast senator who has faced CEOs numerous times. of technology companies on Capitol Hill.

Big Tech always at the center of attention

However, the prospect of deepening antitrust investigations and requests for legislation persists, given the bipartisan interest in controlling Big Tech and immense influence on the economy, culture and all aspects of American life, experts say. of technology.

"Facebook has created a critical infrastructure company that has to work with the government," Kiersten Todt, chief executive of the Cyber ​​Readiness Institute, told MarketWatch. Indeed, antitrust has increasingly become a recurring theme in the risk factor sections of regulatory statements by technology companies.

After more than a year of ignoring the topic or reducing its impact, Apple has highlighted concerns about its App Store and Google's revenues. Apple specifically mentioned the legal risks arising from injunctions that "may require the company to change its business practices or limit the company's ability to offer certain products and services," Apple said in a statement.