Antitrust Probe into Microsoft: What You Need to Know
Microsoft stock (MSFT) dropped approximately 0.8% early Friday following news that the Federal Trade Commission has initiated a broad antitrust investigation into the tech giant. Despite this, a Wall Street analyst predicts that changes at the FTC under the Trump administration could lessen concerns about antitrust in the tech industry.
Anticipation of Changes at the FTC
The FTC’s announcement of a sweeping investigation into Microsoft on Wednesday did not come as a surprise to many analysts. With a new FTC leader to be appointed by President-elect Donald Trump, the current Chair Lina Khan, known for her aggressive stance on antitrust issues in the tech sector, is expected to step down.
Potential Impact on Tech Giants
Companies like Alphabet (GOOG, GOOGL) and Apple (AAPL) have also faced antitrust scrutiny from the FTC. While some investors are optimistic that these threats will diminish under the new administration, others remain cautious about the future of antitrust actions against tech giants.
Outlook for Big Tech
Wall Street analyst Dan Ives foresees a shift in antitrust policies with the new leadership at the FTC and the White House. He predicts that negotiations and remedies for tech companies will be less severe compared to past antitrust battles.
Despite ongoing investigations and regulatory challenges, tech stocks like Microsoft, Apple, and Alphabet continue to outperform the market, highlighting the resilience of these companies in the face of antitrust pressures.
Source : finance.yahoo.com