The news: President-elect Donald Trump nominated now former Rep. Matt Gaetz (R-FL) for attorney general. As a tough antitrust advocate, Gaetz’s appointment could alter the outcome of the proposed Capital One-Discover merger.
Gaetz resigned from the House on Wednesday.
What this means: Gaetz has a history of going after Big Tech, condemning companies like Amazon, Meta, and Alphabet. He has also praised Federal Trade Commission Chair Lina Khan for her antitrust lawsuits against Nvidia, Meta, and Microsoft—although Khan is expected to be replaced under the Trump administration.
- Some of Gaetz’s ill will toward Big Tech is likely due to his criticism that they censor conservatives, as we’ve seen with Trump’s approach to Big Tech.
- Gaetz’s antitrust advocacy could become more far-reaching as AG—though tougher banking regulation would be a departure from Republican orthodoxy.
Because of this, it would not be surprising if a Department of Justice (DOJ) under Gaetz sued to block the Capital One-Discover merger.
Our take: While a Gaetz-led DOJ may spell trouble for the merger, it’s not necessarily game over. Getting Senate confirmation for the attorney general position will be quite difficult for Gaetz.
His nomination drew shock from Democrats—and even some Republicans. Trump ally Rep. Max Miller (R-OH) said Gaetz “has a zero percent shot of getting through the Senate”—Trump may try to use a recess appointment to get him through.
Even if Gaetz does get the position, the merger could also survive a lawsuit from the DOJ if a conservative judge rules in its favor—although that would still cost Capital One and Discover time and money.