Core Viewpoint - The Justice Department has indicated it lacks sufficient evidence to block the merger between Capital One and Discover, allowing the Federal Reserve and the Office of the Comptroller of the Currency to proceed with their approval process [1][2]. Group 1: Merger Details - Capital One announced its planned acquisition of Discover in February 2024, aiming to create a global payments platform with 70 million merchant acceptance points across more than 200 countries and territories [4]. - The merger received approval from the Office of the Delaware State Bank Commissioner in December, marking a significant step toward completion [5]. - In February, over 99% of shareholders from both companies voted in favor of the merger, with expectations for the transaction to close early this year, pending regulatory approvals [6]. Group 2: Regulatory Considerations - The Justice Department's antitrust division, led by Gail Slater, determined there was insufficient evidence to challenge the merger, despite earlier concerns from Biden administration officials regarding potential competitive harm [2][3]. - The review process under the Biden administration considered various factors beyond typical competitive assessments, including impacts on customer segments, fees, interest rates, bank locations, product variety, network effects, interoperability, and customer service [3].

Core Viewpoint - The European Union is preparing to impose a significant fine on Meta, potentially exceeding $1 billion, for alleged violations of its antitrust regulations under the Digital Markets Act [1][2][3]. Group 1: Regulatory Actions - The European Commission is expected to conclude that Meta is not in compliance with the Digital Markets Act, which took effect in 2023 and applies strict competition rules to Meta and six other companies classified as internet gatekeepers [1][2]. - The EU's investigation into Meta is anticipated to conclude soon, with an announcement regarding enforcement actions to follow, including a "cease-and-desist" notice [3]. - Under the Digital Markets Act, companies can face fines of up to 10% of their global revenue, which could increase to 20% for repeat offenses [7]. Group 2: Specific Allegations Against Meta - Meta has been accused of violating the Digital Markets Act by implementing a "pay or consent" model for ads on its platforms, which the EU claims restricts user choice [7][8]. - The European Commission criticized Meta's subscription service launched in 2023, which offers an ad-free experience for a fee while requiring user consent for data usage for targeted ads [8]. Group 3: Broader Context and Implications - Other major tech companies, including Apple, Google, and Amazon, are also under scrutiny by the EU for similar antitrust violations, with potential fines expected soon [4][5][11]. - The EU's actions have drawn criticism from U.S. officials, including President Trump, who views these fines as a form of economic extortion against American companies [1][12][14]. - Meta's CEO, Mark Zuckerberg, has expressed concerns that the EU's fines resemble tariffs and have become a systematic approach to regulating American tech companies [15][16].

Core Insights - Alphabet Inc. has entered a bear market, down 22% from its 52-week highs, influenced by broader U.S. equity sell-offs due to trade war threats and capital outflows [1][2] - The current valuation of GOOGL is approaching historically attractive levels, with a P/E ratio of 20 and a forward P/E of nearly 18, indicating potential value [2][10] - Despite strong performance in Search and YouTube, Alphabet faces challenges in its cloud division, highlighted by a revenue miss and increased competition [5][7] Financial Performance - For Q4 2024, Alphabet reported revenue of $96.47 billion, slightly below expectations, with EPS of $2.15 beating estimates [4] - Google Cloud revenue grew 30% year-over-year to $11.96 billion but missed forecasts, indicating capacity constraints [4][5] - Total annual revenue for 2024 grew 14% to $350 billion, with YouTube ad revenue outperforming expectations at $10.47 billion [5] Strategic Moves - Alphabet announced a $32 billion acquisition of Wiz, Inc., aimed at enhancing Google Cloud's security offerings [8][9] - The acquisition is set to close in 2026 and is part of Alphabet's strategy to strengthen its position against competitors like Microsoft and Amazon [9] Market Outlook - Analysts have a Moderate Buy rating on GOOGL, with a consensus price target of $210.59, suggesting a potential upside of 28.42% from the current price [8][10] - The stock is currently trading near key support levels, indicating a favorable risk-reward setup for investors [2][10]

A man holds an Apple iPhone 16 Pro Max ahead of the launch of sales of the new iPhone 16 series smartphones in a store in Moscow, Russia September 20, 2024.European Union regulators are taking steps to rein in Google and Apple on antitrust charges, even as U.S. President Donald Trump threatens to hit the bloc with tariffs for alleged "overseas extortion" of America's tech giants.The European Commission, which is the executive body of the EU, said Wednesday that it found Google parent company Alphabet in bre ...

Core Insights - Alphabet has agreed to acquire cybersecurity vendor Wiz for $32 billion in cash, significantly higher than the proposed price earlier in 2024, with expectations for the deal to close next year pending regulatory approvals [2][9] - The acquisition aims to bolster Google's cloud division, which currently lags behind Amazon and Microsoft in cloud infrastructure, potentially complicating regulatory scrutiny [3][11] - The deal is seen as a significant test for the new FTC Chair Andrew Ferguson, as the tech industry anticipates how the Trump administration will approach regulatory matters concerning major tech companies [4][19] Company Strategy - The acquisition of Wiz is part of Google's strategy to enhance its security offerings in response to the increasing importance of cybersecurity due to advancements in AI [10][11] - The deal represents a shift in the venture capital landscape, as it could provide a much-needed exit for VC-backed companies that have struggled since the IPO market slowed down [5][6] Market Context - The venture capital exit value has seen a dramatic decline from $780 billion in 2021 to $71.6 billion in 2023, indicating a challenging environment for tech investments [5] - Economic uncertainty, driven by President Trump's tariffs and government spending cuts, has contributed to market volatility, impacting business and consumer confidence [8] Regulatory Environment - The FTC under Lina Khan has been known for its aggressive stance on tech mergers, and the Google-Wiz deal is expected to face significant scrutiny [4][19] - Analysts suggest that Google's position in the cloud market, where it holds less than 15% share, may provide a stronger case for regulatory approval compared to consumer-focused acquisitions [11] Industry Implications - The acquisition is anticipated to serve as a bellwether for M&A activity in 2025, indicating a potential resurgence in large deals for VC-backed companies [5] - The deal could also influence the broader tech industry, as major players like Meta, Apple, and Microsoft have faced similar regulatory challenges [15][19]

Google is buying cybersecurity firm Wiz for $32bn — its biggest acquisition ever.It's also the biggest deal of the year so far and a major test for Donald Trump's antitrust regime.A deal of this size could also supercharge more M&A following a slow few years.Just when 2025 was off to a slow start for M&A, Google announced its largest-ever acquisition. Google's parent company, Alphabet, and Wiz confirmed Tuesday that they had reached an agreement on the $32 billion all-cash deal.The two companies were in ta ...

Core Insights - FTI Consulting, Inc. announced the affiliation of Dr. William Rogerson with its subsidiary Compass Lexecon, enhancing its expertise in antitrust and economic consulting [1][3]. Company Overview - FTI Consulting is a leading global expert firm specializing in crisis and transformation, with over 8,300 employees across 34 countries and territories as of December 31, 2024 [5]. - The company generated revenues of $3.69 billion during the fiscal year 2024 [5]. Expertise and Contributions - Dr. Rogerson holds the Charles E. and Emma H. Morrison Chair of Market Economics at Northwestern University and has extensive experience in antitrust, industrial organization, and regulation [2][4]. - He has served as a consultant for various government agencies, including the Federal Trade Commission and the U.S. Department of Justice, providing valuable insights into competition and regulatory issues [3][4]. - Dr. Rogerson expressed enthusiasm about joining Compass Lexecon's team of respected antitrust experts to assist clients with competition-related challenges [5].

Core Viewpoint - The U.S. Department of Justice (DOJ) is seeking to break up Google's monopoly, leading to a nearly 5% drop in Alphabet's shares, which have fallen nearly 13% since the beginning of the year [1][4]. Group 1: DOJ Actions and Court Proceedings - DOJ attorneys have formally requested U.S. District Judge Amit Mehta to compel Google to divest its Chrome web browser, citing Google's monopolistic practices [2][6]. - The DOJ's court filing accused Google of using "illegal conduct" to establish an "economic goliath" that disrupts the marketplace [3]. - Judge Mehta will hold hearings in April to evaluate the DOJ's proposals, with a final decision expected in the summer [9]. Group 2: Market Impact and Stock Performance - The selloff of Alphabet shares coincided with a broader market decline, with the Nasdaq index dropping nearly 600 points, or 3.2% [4]. - Alphabet's shares have decreased nearly 13% since the start of the year, reflecting investor concerns over regulatory actions [4][7]. Group 3: Proposed Remedies and Recommendations - The DOJ's proposal includes ending Google's default search engine partnerships with companies like Apple, which received $20 billion from Google in 2022 for this arrangement [7]. - The DOJ also suggests that Google should share its search and digital ad data with competitors to promote fair competition [7]. - Additionally, the DOJ recommends that Google divest its Android operating system if initial remedies are ineffective, but has dropped the request for Google to sell its AI investments [8]. Group 4: Company Response and Industry Relations - Google has stated it will appeal the judge's ruling and argues that the DOJ's proposals could harm consumers, the economy, and national security [9][10]. - Company executives have recently met with Trump officials to advocate for leniency in the search case, emphasizing potential national security risks associated with a forced breakup [10].

Core Points - The US Department of Justice (DOJ) is still advocating for Google to divest its web browser Chrome, a proposal that originated under the Biden administration and continues under the Trump administration [1][2] - The DOJ claims that Google's conduct has established a monopoly that disrupts the marketplace, ensuring Google's dominance [2] - The DOJ has modified its stance on Google's artificial intelligence investments, no longer seeking mandatory divestiture but requiring prior notification for future investments [3] - The DOJ's proposal follows antitrust lawsuits against Google, with a ruling indicating that Google acted illegally to maintain its monopoly in online search [4] - Google plans to appeal the ruling but has proposed alternatives to address the court's concerns [4][5] DOJ's Position - The DOJ maintains that the core components of its initial proposal remain unchanged, including the divestment of Chrome and restrictions on search-related payments to distribution partners [2] - The DOJ's current acting attorney general for antitrust emphasizes the need for action against Google's monopolistic practices [2] Future Considerations - The decision regarding the potential divestiture of Android will be left to the court, contingent on market competitiveness [3] - A hearing is scheduled for April, where arguments from both Google and the DOJ will be presented [5]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Unsplash/CC0 Public Domain Google is urging officials at President Donald Trump's Justice Department to back away from a push to break up the search engine company, citing national security concerns, according to people familiar with the discussions. Representatives for the Alphabet Inc. unit asked the government in a ...