In a bold move to curb corporate consolidation and address the dominance of Big Tech, the Biden administration has launched an aggressive campaign through the Department of Justice (DOJ) and the Federal Trade Commission (FTC). The crackdown, led by DOJ Deputy Assistant Attorney General Jonathan Kanter and FTC Chair Lina Khan, aims to challenge mergers, take legal action against resistant companies, and reshape the tech industry through monopoly cases.

Kanter and Khan have been at the center of this groundbreaking initiative, vigorously opposing mergers and dragging defiant companies to court. Notably, they have taken on tech giants like Google and Apple, filing monopoly cases that have the potential to reshape the landscape of the industry.

The DOJ celebrated a significant victory in its case against Google, accomplished by exposing the company's search engine dominance. Another ongoing case targets Google's role in online advertising. Additionally, the government has also turned its attention to corporate middlemen, accusing Live Nation and RealPage of unlawfully monopolizing ticket sales and the rental housing markets respectively.

Furthermore, the DOJ's investigations extend to pharmacy benefit managers, which sit between pharmacies and insurers, influencing prescription drug prices. By launching these investigations, the government aims to address the issue of corporate middlemen and their impact on markets.

Kanter acknowledged the failure of past remedies, such as divestitures, to adequately restore competition. He emphasized the need to learn from past experiences, cautioning companies against expecting their deals to be approved simply by agreeing to sell some assets.

The DOJ and FTC are also jointly investigating partnerships between major tech companies and AI startups, suspecting them of being potential stealth takeovers that bypass government scrutiny. Market leaders like Microsoft, Google, and Amazon have heavily invested in AI firms, acquiring their employees and paying out venture investors, simulating M&A deals. Kanter stressed the importance of preventing such arrangements from stifling innovation and becoming barriers to emerging competition.

Antitrust concerns have transcended partisan lines, with some Republicans, including prominent figure JD Vance, taking a strong stance against corporate consolidation. Kanter noted the growing consensus among the broader public that antitrust measures are beneficial for society, indicating a shift in perspectives.

In a significant development, nonbanks are now being swept into antitrust reviews, signifying the government's acknowledgement of the rapidly changing financial landscape. This move grants the DOJ significant power to regulate a substantial and previously unaddressed portion of the economy.

While the previous rules governing bank mergers were focused on building national branch networks and gathering deposits, Kanter's guidelines may pave the way for a broader examination of competition in the lending market. This could particularly impact lightly regulated entities in the asset-management industry, such as Apollo and KKR, which have created comprehensive lending ecosystems.

Although Kanter refrained from commenting on specific transactions, the impending $35 billion merger between Capital One and Discover may face scrutiny under the new antitrust guidelines. Despite limited overlap in deposits and branches, the DOJ's mandate to evaluate competition in credit cards, payments rails, and merchant fees could raise concerns.

The Progressive Policy Institute, a centrist Democratic think tank, suggests that the Capital One-Discover merger may not be a clear-cut case of substantially lessening competition. Nevertheless, a legal challenge from antitrust regulators, if pursued, could serve as a key test for their new approach.

While the fate of FTC Chair Lina Khan remains uncertain in the next administration, it is apparent that she will likely face an uphill battle regardless of the presidential race outcome. The ongoing efforts to reshape corporate power through antitrust measures have garnered attention and are likely to continue making headlines.