Credit: CFP
AsianFin -- The recent clash between U.S. President Donald Trump and Tesla CEO Elon Musk underscores the increasingly fragile relationship between the White House and Silicon Valley's top executives.
Musk, along with other tech moguls such as Meta's Mark Zuckerberg, Apple's Tim Cook, Amazon's Jeff Bezos, and Google's Sundar Pichai, was given a front-row seat at Trump's January 20 inauguration. However, just five months into Trump's second term, tensions between the president and Big Tech have escalated significantly, with legal battles and rhetorical attacks mounting across the board.
The falling out between Trump and Musk became public last week through a series of heated online exchanges, marking an official break in what was once seen as a mutually beneficial relationship. Meanwhile, other tech giants have been grappling with their own White House challenges.
Zuckerberg failed to persuade Trump to drop an antitrust case against Meta. Apple is facing threats of 25% tariffs on iPhones manufactured abroad and criticism over its growing Indian operations, even as it continues to battle a Justice Department antitrust suit initiated under Biden. The Trump DOJ has also supported efforts to break up Google, continuing Biden-era enforcement.
Trump even personally called Bezos to complain after reports surfaced that Amazon might display tariff-related costs on its product pages—a move the president claims was swiftly reversed following the conversation.
Still, Amazon remains locked in an FTC-led antitrust case originally filed during Biden's tenure. That case, now delayed to February 2027, continues under Trump-appointed officials.
The broader tech industry had hoped that a Republican return to the White House might ease regulatory pressure. Instead, Trump has signaled continuity with many Biden-era antitrust initiatives. According to legal scholars, Trump's approach diverges sharply from traditional GOP norms.
"This isn't the Bush administration," said FTC Chair Andrew Ferguson this spring, signaling the administration's intent to stay tough on Silicon Valley.
Anat Alon-Beck, a professor at Case Western Reserve University School of Law, predicts the administration will maintain its hard stance, buoyed by rare bipartisan consensus that Big Tech wields excessive power.
Nonetheless, there have been some wins for the industry. Trump has rolled back Biden's AI regulatory policies through an executive order aimed at boosting American leadership in artificial intelligence. The directive instructs federal agencies to clear obstacles to AI development, a move welcomed by the tech sector.
"Tech companies may simply have to take what they can get," Alon-Beck said.
Microsoft is one such beneficiary. The FTC recently dropped its legal bid to reverse Microsoft's $69 billion acquisition of Activision Blizzard, a case first launched under Biden. However, Microsoft's legal reprieve may be temporary. Trump's FTC is reportedly expanding its investigation into Microsoft's ties with OpenAI, continuing a probe initiated by former FTC Chair Lina Khan.
