With Trump's Election... Tech Industry Also Likely to Face Winds of Change

Regulatory Relaxation on AI, M&A, and Various Other Areas

Former U.S. President Donald Trump, a member of the Republican Party, is expected to bring changes to the tech industry, which has faced various regulatory challenges under the Joe Biden administration, following his victory in the presidential election, Bloomberg reported on the 6th (local time).

According to Bloomberg, AI regulations are expected to be eased during Trump's second term. The Biden administration implemented a measure last year requiring companies to undergo evaluations by the National Institute of Standards and Technology (NIST) affiliated agencies to ensure there are no security threats before releasing advanced AI models. Since former President Trump has emphasized that this measure hinders innovation, it is expected that he will introduce alternative measures that minimize industry regulations.

However, the 'AI National Security Memorandum' approved by the Biden administration at the end of last month is expected to be maintained. This memorandum treats AI as a national security issue and aims to position the U.S. as a leader in the AI field. Bloomberg explained, "The Trump administration's (AI-related) export control policies could be stricter than those of the Biden administration."

There is also analysis that the second Trump administration will be more favorable toward corporate mergers and acquisitions (M&A) compared to the Biden administration. Lina Khan, chair of the U.S. Federal Trade Commission (FTC), known as the so-called 'Big Tech Grim Reaper,' may be asked to resign. Because of this, some U.S. companies such as Qualcomm and Cigna have reportedly postponed their acquisition plans until after the new administration takes office.

The antitrust litigation stance against Big Tech is also expected to continue under the second Trump administration. Vice President-elect Senator JD Vance is well known for his belief that large corporations should be broken up if necessary for innovation.

However, some foreign media have expressed expectations that the second Trump administration will halt discussions on dismantling Google, which is facing potential breakup plans after losing an antitrust lawsuit in the online search market and is under consideration by the U.S. government.

There is also interest in whether the Chinese short-form platform TikTok will be able to continue its business in the U.S. In March, President Biden signed the 'TikTok Forced Sale Act,' which bans TikTok's services in the U.S. if its parent company ByteDance does not sell its U.S. operations by early next year. Former President Trump has opposed this, arguing that if TikTok is banned in the U.S., Meta Platforms, the parent company of Facebook and Instagram, could monopolize the social networking service (SNS) market.