What Will Happen to Google With Trump on the Presidential Seat?

By Dane Lorica, | November 25, 2016

The deal allows Twitter to offload an asset in the time when it is facing pressure to deliver growth.  (Carlos Luna/CC BY 2.0)

The deal allows Twitter to offload an asset in the time when it is facing pressure to deliver growth. (Carlos Luna/CC BY 2.0)

Google is expected to face stricter regulatory policies now that ally President Barack Obama is leaving his presidential post for President-elect Donald Trump. The incoming administration has the power to reverse policies that favor the internet giant.

The company had shown full support to President Obama, his administration and the presidential candidate of the Democratic Party, Hillary Clinton.

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Just before the president-elect gets seated, the U.S. Federal Communications Commission has called for a stop to regulatory reform measures that adversely affects firms like CenturyLink Inc., and AT&T Inc. Expectations that the commission will reject the proposal from FCC Chairman Tom Wheeler are also surfacing.

The proposal involves opening a market worth $20 billion that will provide pay-TV set-to boxes. If pursued, cable companies will greatly oppose the move while Apple Inc. Google will benefit from it. The said initiative has been backed-up by the outgoing administration.

Analyst Jan Dawson said that Google's involvement in this issue was more active that Apple's.

"I'm not sure it's critical to Google's business at all that it be allowed to provide these next generation set-top boxes, but there was a business opportunity there." Meanwhile, cable companies were left worried as the proposal will allow Apple and Google to create applications and devices that can carry their cable content advertisement.

Following Trump's win, chances of Obama's net neutrality rules being reversed are becoming more possible. A majority of the Republicans do not agree with net neutrality that mandates Internet service providers to set equal treatment of data while removing obstruction to online content.

Since the announcement of Trump's win, Google's parent company Alphabet, Netflix, and Amazon's shares have dropped by 2.4 percent, 5.9 percent, and two percent, respectively. Meanwhile, the shares of Comcast Corp. has risen by 7.7 percent while the shares of Verizon Communications Inc. and AT&T remain unchanged.

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