Shutdown pauses Amazon, Apple antitrust cases

The ongoing government shutdown has created a split in high-profile antitrust litigation against Big Tech, with cases against Google and Meta largely proceeding while those against Amazon and Apple have been paused. Judges are pushing forward with late-stage Google cases, including remedies finalization for search market monopolization, and Meta's Instagram acquisition case awaits a decision. In contrast, federal judges granted pauses for the earlier-stage antitrust cases against Amazon and Apple, potentially delaying these actions further, particularly given their 2027 trial timelines. This divergence underscores the uneven immediate impact of the shutdown on the government's regulatory pressure on major tech firms.

Analysis

Shutdown pauses Amazon, Apple antitrust cases Here's what's happening to Washington's high-profile push against Big Tech Google is currently involved in two antitrust cases. | Josh Edelson/AFP via Getty Images Half of the government’s biggest antitrust cases against tech giants are hitting “pause,” and half are plowing forward despite a lapse in government funding. The cases against four Big Tech giants — Google, Meta, Apple and Amazon — are some of the most closely watched in Washington and the corporate world. They’re also among the most politically vulnerable, as the companies’ CEOs try to forge tighter relationships with Donald Trump and his White House. The cases against Google and Meta are continuing during the federal government’s shutdown. Both companies are near a resolution, with a judge looking to finalize his decision in one of Google’s cases and another expected to issue a decision on Meta soon. Cases threatening to break up Amazon and Apple, however, were paused this past week. Amazon was not slated to go to trial until February 2027, and discovery and depositions for Apple were scheduled through January 2027. Judges in both approved the government’s request for a pause until federal funding is restored. Just how much the shutdown affects the cases will likely come down to how long the government remains shuttered. A few days or weeks of stopped work is unlikely to cause much disruption, while a longer delay could push back trial dates already scheduled for 2027. Judges also have wide discretion on whether to pause litigation. Even during a shutdown, the FTC and DOJ are still required to proceed with a case if ordered by the court. Both Google and Meta are in the late stages of their cases. In one of Google’s cases, concerning its search empire, the government requested a pause until it re-opens. D.C. District Judge Amit Mehta instead ordered it to proceed, noting that antitrust litigation continued during the 2019 shutdown. Mehta has an Oct. 8 hearing scheduled to finalize his remedies ruling, in which he refused to break up Google for monopolizing the online search market. In the DOJ’s other case against Google, which targets the company’s monopoly in the online ad market, the government has not filed a request to suspend proceedings — though the department’s lawyers did ask for a pause in court this week, and were turned down. That case has been in a remedies trial since last week. The FTC didn’t file a request to pause its case against Meta’s acquisition of Instagram, which is awaiting a judge’s decision after going to trial this spring. The FTC and DOJ were not immediately available for comment. District Judge John Chun in Washington state, however, granted the FTC’s request to suspend proceedings in its case against Amazon, which has to do with the company allegedly prioritizing its own products in its online store. Chun ordered that depositions currently in process could continue. A day later, District Judge Leda Dunn Wettre approved a similar request in New Jersey from the Justice Department in a case concerning Apple’s alleged monopoly in the smartphone market. The federal judiciary has announced that the courts will stay open at least through Oct. 17 using court fee balances and other funds that aren’t affected by the lapse in appropriations. The judiciary was operational for the entirety of the 2018 shutdown, which lasted for five weeks. The FTC and DOJ are continuing to accept pre-merger notification filings during the current shutdown. Stephen Calkins, a law professor at Wayne State University, said Mehta’s decision to push forward with Google’s case could be due to his desire to wrap it up. “My guess is that Mehta is almost done with this and wants it resolved before technology changes … whereas Amazon and Apple are much earlier,” he said. Vanderbilt University law professor Rebecca Haw Allensworth said one of many factors in any judge’s decision is ensuring fairness to either side, especially when considering how much unpaid work needs to be done for the government’s lawyers. “If you ask an entire trial team to go to trial on furlough, that seems pretty unfair,” she said. “Whereas, if there are a couple of briefs or deadlines that are due, and you’re supposed to be moving along to discovery.” The ongoing US government shutdown is creating a notable divergence in the progression of high-profile antitrust cases against major technology firms. Litigations targeting Amazon (AMZN) and Apple (AAPL), which are in earlier stages with trials not expected until 2027, have been formally paused at the government's request. This provides a temporary reprieve for both companies, though a prolonged shutdown could push back their trial dates further. In contrast, cases against Google (GOOGL) and Meta (META) are proceeding as they are in more advanced stages. Critically for Google, while one of its trials continues, the presiding judge has already refused to order a structural breakup of its search business and is moving to finalize remedies, a development that materially reduces the worst-case scenario risk for the company. Meta's case concerning its Instagram acquisition is also proceeding, with a judicial decision pending. This split in legal proceedings highlights that the immediate impact of the shutdown on regulatory overhang is not uniform across Big Tech, providing a near-term benefit to Amazon and Apple while keeping the pressure on Google and Meta.

Key Decisions for Investors

• The litigation pause for Amazon and Apple provides a near-term reduction in headline risk, but investors should monitor the shutdown's duration, as a protracted delay could postpone the 2027 trial timelines.
• For Google, the most significant development is the judge's refusal to order a breakup in its search monopoly case, which substantially de-risks the stock from a regulatory perspective even as the trial proceeds.
• Meta's situation remains one of status quo uncertainty as its case awaits a decision, meaning investors should continue to price in the existing regulatory risk without a new catalyst.
• Consider adjusting relative weightings within the tech sector, as the divergent legal timelines mean Google and Meta face more immediate resolutions while the primary legal overhang for Amazon and Apple is deferred.