The Monopoly Report: Episode 33 Summary

Title: Episode 33: Jonathan Kanter on Antitrust & Search
Host: Alan Chappelle
Release Date: June 11, 2025
Guest: Jonathan Kanter, Former Assistant Attorney General for the Antitrust Division, Department of Justice (DOJ)

Introduction

In Episode 33 of The Monopoly Report, host Alan Chappelle engages in a comprehensive dialogue with Jonathan Kanter, the former Assistant Attorney General who spearheaded the DOJ's antitrust initiatives against Google. This two-part interview delves deep into the DOJ's antitrust strategies, the evolution of enforcement across different administrations, and the specific challenges posed by major tech conglomerates in the digital media marketplace.

Background on Jonathan Kanter

Jonathan Kanter brings a wealth of experience from his tenure at the DOJ, where he played a pivotal role in reinvigorating antitrust enforcement in the United States. His efforts extended beyond Google, targeting giants like Apple, Live Nation, Ticketmaster, and scrutinizing significant mergers such as Spirit Airlines and JetBlue. Post-DOJ, Kanter contributes to CNBC, offering insights into ongoing antitrust debates.

[02:30] Jonathan Kanter: "You should check it out."

DOJ’s Antitrust Approach: Past and Present

Kanter and Chappelle explore the DOJ's antitrust enforcement during different presidential administrations. Kanter emphasizes the continuity in addressing corporate monopolies, irrespective of political shifts, highlighting a bipartisan acknowledgment of the dangers posed by unchecked corporate power.

[06:17] Jonathan Kanter: "Corporate power can be as dangerous, if not more dangerous than the concentration and abuse of government power."

Shift from Traditional to Modern Enforcement

The conversation touches upon the rejection of outdated economic theories, such as those from the Chicago School, advocating for a more empirical and market-reality-based approach. Kanter critiques the formalistic and simplistic market assumptions of past school philosophies, stressing the need for modern, sophisticated analysis in antitrust cases.

[07:23] Mark Hamer: "It's very formalistic and in many instances out of date, lack sophistication."

Remedies in Antitrust Cases

A significant portion of the discussion revolves around the proposed remedies in antitrust cases, particularly against Google. Kanter defends the DOJ's strategy of implementing technical committees to oversee compliance, drawing parallels with the historical Microsoft Consent Decree.

[17:37] Alan Chappelle: "So how does DOJ build a better mousetrap?"

Kanter underscores the importance of technical expertise in these committees to navigate the complexities of modern tech products, ensuring that remedies are both practical and enforceable.

[19:14] Jonathan Kanter: "Because if you do that too often, the court gets annoyed and somebody gets yelled at and the results are probably less favorable."

Google's Antitrust Strategy and Remedies

The episode delves into Google's defensive stance in antitrust litigation. Kanter describes Google's approach as one that involves negotiation and legal maneuvering, often resulting in tepid remedies that may not fully address the DOJ's concerns.

[15:12] Alan Chappelle: "Is that just how this typically works? Did Microsoft do the same thing?"

Historically, such cases often culminate in negotiated settlements, with courts later refining or rejecting these agreements based on their adequacy in curbing monopolistic practices.

Technical Committees and Enforcement

Drawing from the Microsoft case, Kanter explains the role of technical committees in antitrust remedies. These committees, composed of industry experts and engineers, facilitate ongoing oversight and ensure compliance with complex technological requirements.

[18:34] Mark Hamer: "I'm fully aware."

[19:08] Mark Hamer: "The court said, that's one of the most important innovations of that settlement."

Kanter highlights that while not flawless, this framework provides a structured method for addressing disputes without overburdening the courts.

Chrome Divestment in the Search Case

A focal point of the discussion is the remedy involving the divestiture of Google Chrome in the antitrust case against Google's search practices. Kanter elaborates on the significance of this move, aligning it with the court's findings on monopoly harm.

[21:22] Jonathan Kanter: "In the search case, can you quantify how important you think Chrome Divestment is."

[22:34] Guest Speaker: "I think the remedy was crafted to map to the findings."

The divestiture aims to dismantle Google's control over the browser market, fostering competition and preventing future monopolistic dominance, especially as the tech landscape evolves with AI advancements.

Privacy and Antitrust in the Digital Media Space

Kanter and Chappelle discuss the intersection of privacy concerns and antitrust enforcement. They argue that while privacy regulations are essential, they should not inadvertently strengthen monopolistic positions by limitating competition.

[27:40] Mark Hamer: "In tech, the most dominant companies tend to be among the most invasive in terms of privacy."

The conversation warns against using privacy as a mere tool for competitive exclusion, advocating for balanced regulations that protect users without entrenching corporate monopolies.

Future of Competition and AI

Looking forward, the dialogue anticipates the role of emerging technologies like artificial intelligence in shaping antitrust landscapes. Kanter stresses the importance of creating remedies that anticipate technological shifts, preventing dominant firms from stifling innovation.

[32:21] Jonathan Kanter: "The next inflection point that has the opportunity to unseat the search monopoly will likely come from Companies that are adjacent to search in AI."

The discussion underscores the need for proactive antitrust strategies that accommodate rapid technological advancements, ensuring a dynamic and competitive marketplace.

Notable Quotes

• Jonathan Kanter [06:17]: "Corporate power can be as dangerous, if not more dangerous than the concentration and abuse of government power."
• Mark Hamer [07:23]: "It's very formalistic and in many instances out of date, lack sophistication."
• Jonathan Kanter [19:14]: "Because if you do that too often, the court gets annoyed and somebody gets yelled at and the results are probably less favorable."
• Jonathan Kanter [32:21]: "The next inflection point that has the opportunity to unseat the search monopoly will likely come from Companies that are adjacent to search in AI."

Insights and Conclusions

The episode offers a nuanced examination of modern antitrust enforcement, highlighting the DOJ's efforts to adapt to contemporary challenges posed by big tech. Kanter advocates for a balanced approach that combines rigorous competition policies with thoughtful regulatory frameworks, ensuring that technological innovation thrives without being overshadowed by monopolistic entities.

Key takeaways include:

• Empirical and Modernized Antitrust Analysis: Moving beyond outdated economic theories to incorporate real-world market dynamics.

• Technical Committees as a Remedy Framework: Facilitating ongoing oversight through expert panels to manage complex tech compliance.

• Strategic Remedies in Antitrust Cases: Utilizing divestiture and other structural remedies to dismantle monopolistic practices effectively.

• Balancing Privacy and Competition: Ensuring that privacy regulations do not inadvertently reinforce corporate dominance.

• Proactive Antitrust Strategies for Emerging Technologies: Anticipating and mitigating future monopolistic threats posed by advancements like AI.

Kanter's holistic view underscores the intricate relationship between regulation, competition, and technological progress, advocating for strategies that promote a fair and dynamic marketplace.

Closing Remarks

Alan Chappelle concludes the episode by praising Kanter's comprehensive understanding of the digital media landscape and his strategic approach to antitrust enforcement. He hints at a forthcoming Part Two, which will delve deeper into remedies proposed in the Google Ad Tech case, promising further insights into the complexities of regulating big tech.

[37:10] Alan Chappelle: "Look out for part two of my interview, which focuses mostly on the remedies being proposed in the Google Ad tech case."

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