WASHINGTON: Pressure is rising on Big Tech firms, signaling tougher regulation in Washington and elsewhere that could lead to the breakup of the largest platforms. But you’d hardly know by looking at their share prices.
Shares in Apple, Facebook, Amazon and Google parent Alphabet have hovered near record highs in recent weeks, lifted by pandemic-fueled surges in sales and profits that have helped the big firms extend their dominance of key economic sectors.
The Biden administration has given signs of more aggressive regulation with appointments of Big Tech critics at the Federal Trade Commission.
But that has failed to dent the momentum of the largest tech firms, despite tough talk and antitrust litigation in the United States and Europe, with US lawmakers eyeing moves to make antitrust enforcement easier.
Big Tech critics in the United States and the EU want Apple and Google to loosen the grip of their online app marketplaces; more competition in a digital advertising market dominated by Google and Facebook; and better access to Amazon’s e-commerce platform by third-party sellers.
One lawsuit tossed out by a judge but in the process of being refiled could force Facebook to spin off its Instagram and WhatsApp platforms, and some activists and lawmakers are pressing for breakups of the four tech giants.
All four have hit market valuations above $1 trillion, with Apple over $2 trillion. Alphabet shares are up some 80 percent from a year ago, with Facebook up nearly 40 percent and Apple almost 30 percent. Amazon shares are roughly on par with last year’s level after breaking records in July.
Microsoft, with a $2 trillion valuation, has largely escaped antitrust scrutiny, even as it has benefitted from the cloud computing trend.
The surging growth has stoked complaints that the strongest firms are extending their dominance and squeezing out rivals.
Yet analysts say any aggressive actions, in the legal or legislative arena, could take years to play out and face challenges.
“Breakup is going to be nearly impossible,” said analyst Daniel Newman at Futurum Research, citing the need for controversial legislative changes to antitrust laws.
Newman said a more likely outcome would be multibillion-dollar fines that the companies could easily absorb as they adjust their business models to adapt to problematic issues in a fast-moving environment.
“These companies have more resources and know-how than the regulators,” he said.
Dan Ives at Wedbush Securities said any antitrust action would likely require legislative change — unlikely with a divided Congress.
“Until investors start to see some consensus on where the regulatory and law changes go from an antitrust perspective, it’s a contained risk, and they see a green light to buy tech,” he said.
Other factors supporting Big Tech include a massive shift to cloud computing and online activities that allow the strongest players to benefit, and a crackdown in China on its large technology firms.
“The China regulatory crackdown has been so massive in scale and scope, it has driven investors from Chinese tech to US tech,” Ives said.
“Even though there is regulatory risk in the US, it pales in comparison to the crackdown we’re seeing from Beijing.”
Analysts say the big tech firms are also well-positioned to deal with tougher regulations.
Tracy Li of the investment firm Capital Group, in a recent blog post that the tech giants face major risks in regulation around privacy, content moderation and antitrust.
“Concerns related to privacy or content may actually strengthen, rather than weaken, the moats of the largest platforms,” Li said.
“These companies often boast well-established protocols and have more resources to tackle privacy and legal matters.”
Other analysts point to the swift movement by tech firms to adapt their business models in contrast to the slow efforts to regulate.
Facebook, for example, is adapting to changing conditions by moving into the “Metaverse” of virtual and augmented reality experiences, noted Ali Mogharabi at Morningstar.
Mogharabi said Facebook’s vast data collected from its 2.5 billion users gives it the ability to withstand a regulatory onslaught.
“Antitrust enforcement and further regulations pose a threat to Facebook’s intangible assets, data,” the analyst said in a July 29 note.
“However, increased restrictions on data access and usage would apply to all firms, not just Facebook.”
Independent analyst Eric Seufert said in a tweet that “regulatory changes will have a significant impact on Facebook’s business, but the sheer scale of Facebook and the growth trajectory of digital advertising ameliorate that. Facebook’s gold mine is far from depleted.”
Newman said the large tech firms have expanded during the pandemic by delivering innovative services, extending a trend that has seen the strong get stronger.
“These platforms have created better experiences for consumers, but it is extremely difficult for new entrants,” he said.
For investors, Newman added, “that means no one is creating revenue and profit growth faster.”
Big Tech rolls on as investors shrug off regulatory pressure
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Big Tech rolls on as investors shrug off regulatory pressure
- Shares in Apple, Facebook, Amazon and Google parent Alphabet have hovered near record highs in recent weeks
- Big Tech critics in the United States and the EU want Apple and Google to loosen the grip of their online app marketplaces
Google judge mulls softer remedies in US search antitrust case
- Judge floats contingent end to Apple payments
- Says AI products likely to compete with search
WASHINGTON: A federal judge in Washington suggested on Friday he is considering making Alphabet’s Google take less aggressive measures to restore competition in online search than the 10-year regime proposed by antitrust enforcers.
US District Judge Amit Mehta heard closing arguments on Friday at a trial on proposals to address Google’s illegal monopoly in online search and related advertising.
“Ten years may seem like a short period, but in this space, a lot can change in weeks,” he said, citing recent developments such as ChatGPT maker OpenAI buying a device startup.
The DOJ and a coalition of states want Google to share search data and cease multibillion-dollar payments to Apple and other smartphone makers to be the default search engine on new devices.
At the hearing, the judge floated the possibility of limited data sharing and ending the payments only if other measures do not increase competition. He also grappled with the rise of artificial intelligence products that could replace traditional search engines.
An alternate default search engine in Apple’s Safari browser is unlikely to come from existing rival search engines like DuckDuckGo or Bing, the judge said.
“If anything it’s going to be one of these AI companies that can do more than just search. And why? Because maybe people don’t want 10 blue links anymore,” he said, referring to earlier iterations of Google’s search engine.
The case has already rattled Google’s share price by exposing Apple’s plans to offer AI-based search options.
The trial began in April and Judge Mehta has said he aims to rule by August.
AI “rivals”?
Antitrust enforcers are concerned about how Google’s search monopoly gives it an advantage in AI products like Gemini and vice versa.
Nick Turley, OpenAI’s product head for ChatGPT, testified that the ChatGPT creator is years away from its goal of being able to use its own search technology to answer 80 percent of queries and that having access to Google search data would help it focus on improving ChatGPT. Turley also said OpenAI would be interested in buying Chrome if Google is forced to sell it.
But Mehta questioned whether companies like OpenAI or Perplexity should be considered Google competitors who would be given access to any data Google is required to share, given that the case focused on search engine competitors.
“It seems to me you now want to kind of bring this other technology into the definition of general search engine markets that I am not sure quite fits,” the judge said to DOJ attorney Adam Severt.
Severt replied that while the first part of the case focused on the past, the remedies must be forward-looking.
John Schmidtlein, an attorney for Google, said at the hearing that while generative AI is influencing how search looks, Google has addressed any concerns about competition in AI by no longer entering exclusive agreements with wireless carriers and smartphone makers including Samsung Electronics , leaving them free to load rival search and AI apps on new devices.
Schmidtlein argued it would be inappropriate to give successful AI companies like OpenAI technology that Google has spent 20 years perfecting.
“Coming to Google and asking Google for a handout when they are the market leader seems completely disproportionate to what this case is about,” he said.
Israel kills another journalist in Gaza as global criticism intensifies
- Moataz Mohammed Rajab was killed by an airstrike on a civilian vehicle
- Latest casualty comes amid mounting international calls for sanctions on Israel
LONDON: Israeli forces killed Moataz Mohammed Rajab, a Palestinian photojournalist and video editor for Al-Quds Al-Youm TV, in an airstrike on Gaza City late Wednesday, amid mounting international condemnation of Israel’s conduct in the war.
According to the Palestinian Journalists Syndicate, Rajab was killed while covering Israeli attacks near Al-Nafaq Street, when an airstrike hit a civilian vehicle. He died instantly along with other civilians.
The Government Media Office in Gaza condemned what it called the “systematic targeting and assassination” of Palestinian journalists, accusing Israel of a deliberate campaign against the press.
“This is not random,” the office said in a statement. “Israel is deliberately assassinating Palestinian journalists.”
It urged the International Federation of Journalists, the Arab Journalists Union and global press freedom organizations to move beyond statements and take tangible action.
Rajab’s death comes amid mounting pressure on Israel to deescalate its assault on Gaza and ease a months-long blockade that has plunged the enclave’s 2.3 million residents into a severe humanitarian crisis.
Calls for restraint have grown increasingly urgent in recent days. Italian Foreign Minister Antonio Tajani said Israeli actions had taken “tragic and unacceptable forms,” and urged an immediate end to the bombings and resumption of humanitarian aid. He added that the forced displacement of Palestinians “is not and never will be an acceptable option.”
In one of the strongest public criticisms yet from a close ally, German Chancellor Friedrich Merz earlier this week questioned the justification for continued Israeli airstrikes, calling them “no longer comprehensible” and suggesting they go beyond the stated aim of defeating Hamas. Observers say the remarks reflect a growing shift in German public opinion.
As the war passes the 600-day mark, international calls for a ceasefire are gaining traction.
At least 44 people were killed in Israeli airstrikes across the Gaza Strip on Thursday. The latest attacks came a day after desperate civilians looted a World Food Programme warehouse in central Gaza, highlighting the deepening humanitarian crisis.
Since the war began on Oct. 7, 2023, more than 54,000 people have been killed in Gaza, the vast majority of them civilians, including thousands of children.
The toll on journalists has also been staggering. According to the Committee to Protect Journalists, at least 181 media workers have been confirmed killed: 173 Palestinian, six Lebanese and two Israeli.
The organization said that at least 17 journalists and two media workers were deliberately targeted by Israeli forces in what CPJ classifies as murder.
In a report issued Wednesday, CPJ said Israel’s blockade and hunger crisis are severely hampering the ability of the press to cover the war, with Gaza’s media sector now described as “dismantled” and “exhausted.”
TikTok and SRMG join forces to back local talent, drive MENA media innovation
- Partnership will accelerate creator economy and drive commercial growth by integrating TikTok’s platform with SRMG’s media ecosystem, events, and training initiatives, companies said
RIYADH: Leading media group SRMG has announced a strategic partnership with TikTok to empower the next generation of content creators in Saudi Arabia and across the MENA region, while also driving commercial growth through a series of innovative initiatives.
The partnership will leverage TikTok’s expertise in amplifying content reach, unlocking monetization opportunities, and fostering deeper connections with the region’s digitally native audience. It also aims to expand TikTok’s footprint through integration into SRMG’s flagship events and diverse media platforms, particularly in the fields of entertainment, sports, and lifestyle.
A key initiative under the partnership was the launch of #TikTokAcademy, a local program tailored for Saudi Arabia and developed in conjunction with SRMG Academy. This initiative invites aspiring digital storytellers to submit original content across lifestyle, fashion, film and entertainment, news, and sports. Selected creators will gain exclusive training across SRMG’s media brands, gaining firsthand experience alongside editors, journalists, and producers.
As part of the partnership, SRMG’s cultural and entertainment events such as the Billboard Arabia Music Awards and Hia Hub, will provide a prominent platform to spotlight TikTok creators and raise their profile. SRMG will also activate its extensive media network, including, Hia Magazine, Sayidaty, Arriyadiyah, and Billboard Arabia to amplify content and showcase creators through editorial and digital platforms.
This aligns with broader industry momentum, as the media sector added SAR 14.5 billion ($3.86 billion) to the GDP in 2023, with ambitions to more than triple that by 2030 and generate 67,000 jobs by 2024. The entertainment sector is booming as well, bringing in over SAR 1 billion in revenue and engaging more than 75 million people in the past five years. Social media is a major driving force behind this surge, with Saudi Arabia ranked among the top countries for usage, fuelling a new era of content creation, digital storytelling, and influencer-led innovation.
Commenting on the partnership, Bassil Al Mouallimi Chief Strategy & Commercial Officer at SRMG, said: “We believe in the power of community and in the influential role the new generation plays in shaping the future of media in our region.” He noted that “the region’s creative economy is witnessing remarkable and rapid growth, particularly across the media, entertainment, and social platform sectors.” Al Mouallimi added: “Our strategic partnership with TikTok marks a significant step in solidifying our presence at the heart of this creative movement. We are working to connect talented creators with global platforms and foster an environment that empowers them to thrive and make a meaningful impact.” He emphasized that “this goes beyond simply producing trend-driven content — it’s about building sustainable career paths, amplifying authentic voices, and driving growth in the content economy.”
Kinda Ibrahim, TikTok’s General Manager of Content Operations in MEA, South and Central Asia said “At TikTok, we are committed to empowering a new generation of storytellers by giving them the tools, platform, and global stage to express themselves and shape culture. Saudi Arabia is home to an incredibly engaged and creative community. Through this partnership with SRMG, we are doubling down on our efforts to nurture local talent, fuel the region’s creative economy, and help creators thrive, not just in the Kingdom, but across the world.”
This strategic partnership builds on the momentum of earlier joint initiatives, including the launch of the Billboard Arabia TikTok Music Charts, a first-of-its-kind platform spotlighting the most streamed and culturally influential songs in the Arab world. It also follows the rollout of SRMG Academy’s first technology journalism course, powered by TikTok, designed to train the next wave of Saudi storytellers in navigating and reporting on the fast-evolving tech landscape.
Adviser to UAE president warns of regional gridlock without strategic shifts
DUBAI: Anwar Gargash, diplomatic adviser to the UAE president, defended the country’s foreign policy and addressed the Arab world’s uncertain geopolitical landscape during a panel discussion at the Arab Media Summit in Dubai.
“How can you explain everything that is happening in the Arab world now?” asked Taher Baraka, presenter at Al Arabiya.
Gargash responded with a single word: “Uncertainty.”
Elaborating on this theme, he pointed to the fragile resurgence of nations such as Syria and Lebanon as central to the region’s current volatility.
“We have two Arab worlds,” he said. “There is the GCC, and then there are Arab countries that are suffering.”
Gargash emphasized the UAE’s proactive foreign policy, which he described as essential to fostering stability and peace for the Emirati people.
“We know we have to address the problems in our region,” he said. “Yes, there are challenges — but there is also significant potential.”
He also addressed criticism surrounding the UAE’s decision to normalize ties with Israel, a move that has sparked debate across the Arab world.
“Normalization is being used as a scare tactic,” he said. “But it is a sovereign decision, and for us, it was the right choice.”
Despite this stance, Gargash reaffirmed the UAE’s enduring support for the Palestinian cause.
“Our commitment to the Palestinian people and their right to a state remains unchanged. Their suffering brings us real pain,” he said.
Gargash argued that without normalization, the Arab world risks clinging to outdated strategies that perpetuate conflict and division.
Using the metaphor of a “bottleneck,” he described the political paralysis in Syria and Lebanon, where armed militias continue to undermine national sovereignty.
“We cannot have two armies in one country,” he said. “We need realistic priorities.”
Gargash highlighted the UAE’s role in supporting crisis-hit nations, pointing to the large Lebanese and Syrian diasporas in the Emirates.
“The UAE has been the breathing lungs for Lebanon and Syria during the height of their crises. Many of their citizens came here and thrived. If they can innovate here, they can innovate in Lebanon or Syria,” he said.
New currency in the works, says Syrian economy minister
- Syria is striving to become an open economy and attract foreign investment
DUBAI: Syrian Economy Minister Mohammad Nidal Al-Shaar has said his country is working on developing a new currency but will not make any hasty decisions.
Speaking at the Arab Media Summit on Wednesday, Al-Shaar said the new Syrian government was “dealing with this calmly and patiently” and pointed to the economy’s flaws under Bashar Assad’s regime.
“The regime had different channels to pay salaries, one was through royalties that were imposed on traders and the other was through captagon production. When the regime fell, these stopped so there is a shortage in liquidity currently,” he explained.
Liquidity was the main challenge faced by Syria’s economy, he added, as the previous regime had retrieved most of the country’s liquid assets from overseas before it fell.
“We are working on retrieving our funds from abroad in cash; unfortunately the regime was able to retrieve most of it but something is better than nothing,” he said.
Earlier this year, the UAE invested $800 million to develop the Syrian port of Tartous after the US lifted sanctions.
Al-Shaar said Syria was striving to become an open economy and attract foreign investment but was being selective to avoid creating economic chaos.
“Brotherly countries of the Middle East are all looking forward to protecting Syria from chaos, the Syrian people are tired of (it) and cannot bear any more,” he added.
