Former DOJ employees make up both its in-house team and members of outside counsel firms it employs. The company has hired three former DOJ officials into regulatory roles since May 2022, and one before that in 2021, according to public information including social media profiles. Google also uses four different outside counsel firms loaded with nearly 20 former DOJ officials, many of whom worked in the Antitrust Division at various times.
Such hiring to its internal regulatory team is a reflection of the intense scrutiny Google is facing from governments around the world. It can be a signal that a company anticipates dealing with regulatory challenges in years to come, even if it doesn’t know exactly what form it’ll take yet, according to two former government officials.
“When companies find themselves under intense scrutiny from regulatory authorities, antitrust law or otherwise, they make moves like this,” said Bill Kovacic, a former Federal Trade Commission chair who now teaches antitrust law at George Washington University.
Google now faces two antitrust challenges from the DOJ, both to its search and ad tech businesses, and additional challenges from a slew of state attorneys general. Regulators around the world, including in Europe and Australia, have also presented policy and enforcement hurdles.
Google’s hiring is not surprising for a company under such a microscope, according to Doug Melamed, a former acting assistant attorney general at the DOJ Antitrust Division who’s now a scholar-in-residence at Stanford Law School.
The company had already been fighting one complex antitrust case that would likely require a team of 10 to 15 lawyers alone, according to Melamed, when the Department brought its second antitrust challenge against the company earlier this year.
“They don’t have the capacity to handle a case like that just sitting idle,” Melamed said. “They’ve got to now think about well, what outside lawyers are available that have to have the time and expertise to handle this case? And then, do I have the in-house capability to support it and supervise it?”
The added threat of new legislation targeting Google’s business, and that of other tech firms, looms. In the near term, it appears that a massive lobbying campaign by the industry has successfully delayed the most disruptive reforms. But the possibility of renewed energy around that legislation still hangs over the industry, and a company like Google “can take nothing for granted now,” Kovacic said, adding that’s likely a reason for the company to build out its regulatory forces.
“New entrants and new innovations are driving competition and delivering value for America’s consumers, publishers, and merchants,” a Google spokesperson said in a statement for this story. “We’re proud of our services and we look forward to making our case in court.”
Revolving door hiring
Alphabet now has at least five former DOJ staffers on its legal team, including Google’s director of competition Kevin Yingling, who’s been with the company for more than a decade and worked as a trial attorney at the Department of Justice from 2000 to 2005, according to his LinkedIn.
The company hired Kate Smith as counsel for Alphabet’s regulatory response, investigations and strategy unit in February 2021, according to LinkedIn. Smith was a trial attorney in the DOJ’s Civil Frauds division from September 2015 until January 2021.
In May 2022, according to LinkedIn, Alphabet hired Mike Kass, a former trial attorney in the DOJ’s Civil Fraud section, as its regulatory and litigation counsel for products.
A month later, the company hired Seema Mittal Roper as counsel on its regulatory response team. Mittal Roper worked as an assistant U.S. attorney for the DOJ in Maryland from 2013 to 2018, according to LinkedIn.
Most recently, the company hired Jack Mellyn as strategy counsel on its regulatory team. Mellyn was previously an attorney advisor and then acting assistant chief in the DOJ’s competition policy and advocacy section, according to a previously available social media profile.
It’s not clear which employees are working on the specific matters before the DOJ and Kass’ role appears focused outside of antitrust. It’s likely these employees never worked on Google-related matters they’re dealing with now during their time in government, given their dates and areas of previous employment, as well as federal ethics rules that bar certain conflicts.
But experts say this kind of hiring, which is common among businesses faced with regulatory scrutiny, can still be beneficial to a company because of the unique insight, touch or credibility that an ex-government attorney might hold when it comes to their former colleagues.
“There are lots of lawyers out there. But only alumni of an office really understand how that office works,” said Jeff Hauser, executive director of the Revolving Door Project, which tracks the business ties of executive branch officials. “That means its strengths and weaknesses, that means the tendencies of people in that office. And they can therefore give much more concrete intelligence and better-informed advice to their client.”
Hauser said this may mean the lawyers could advise a client or employer to flood the agency with information rather than comply with a certain document request, knowing that the enforcers don’t have the capacity to deal with it. Or, they might suggest strategies to approach a deposition, knowing the government staffer conducting it.
“A lawyer who’s had experience in the government doesn’t bring information about the specific matters of the companies involved, but rather brings a general perspective about how the agency is approaching these kinds of problems,” Melamed said.
Enforcement agencies also often have to trust whether they believe the target of an investigation has complied with its requests. Hauser said the agencies may be more inclined to take the word of their former colleagues, compared to a more removed attorney.
A recent event shows what can happen when that trust is broken. The DOJ last month accused Google of destroying chat messages it should have kept under a litigation hold related to the investigation. The DOJ made the accusation in a legal filing after Epic Games raised the concern in its own antitrust litigation against Google.
A Google spokesperson said in a statement at the time of the DOJ’s filing that they “strongly refute the DOJ’s claims.”
Google also works with outside counsel firms on its antitrust cases, including Axinn, Freshfields, Ropes & Gray and Wilson Sonsini, based on reports, statements and legal filings. Those firms collectively have around 20 former DOJ employees on their staff, many of them working in antitrust. Though these attorneys may not all work on Google matters, the firms themselves often tout the benefit of former government officials in bringing a helpful perspective to clients.
For example, Freshfields says on its website that its “deep bench of former DOJ and FTC trial attorneys gives us unique insight into how the enforcement agencies approach enforcement in general and litigation in particular.”
Kovacic said agency experience is something companies look for in hiring outside firms.
“In deciding who to retain, what law firm to retain or what economic consultancy to retain, they would place a lot of weight on how many former government officials are in those firms,” Kovacic said.
Freshfields attorneys Julie Elmer and Eric Mahr have led Google’s defense against an advertising technology monopolization case brought by a group of states led by Texas, The New York Times reported in 2021. And Bloomberg Law reported this year that Mahr will also lead its defense in the ad tech case brought by the DOJ.
Mahr was director of litigation for the DOJ Antitrust Division from 2015 to 2017, according to the Freshfields site, and Elmer worked as a trial attorney in the Antitrust Division from 2015 to 2020, according to her LinkedIn profile.
Revolving door hiring goes both ways between the public and private sectors, with government officials often working for previous employers or clients who become relevant in their work. For example, DOJ antitrust chief Jonathan Kanter previously worked for clients including Microsoft and Yelp which have complained of Google’s allegedly anticompetitive behavior.
Ultimately, however, Kanter was cleared to work on cases and investigations involving Google, despite the company’s suggestion that his past work should cast doubt on his ability to be fair in such matters.
The DOJ and Wilson Sonsini declined to comment. The three other firms mentioned did not immediately provide a comment for this story.
Limits for former government employees
There are limits on what former government officials can work on under federal ethics and Bar rules.
For example, the DOJ’s website says that former employees can’t represent someone before the government on an issue involving parties they “personally and substantially” worked on during their time in government. For two years after leaving the Department, a former employee also cannot represent anyone before the government in a matter involving parties they know “was pending under his official responsibility for the last year of government service and in which the U.S. is a party or has a substantial interest.”
And for one year after leaving the agency, former senior employees cannot represent someone before the agency “with the intent to influence” the DOJ on a pending matter or one in which it has an interest.
Personal and substantial work on a matter within government doesn’t depend on the length of time devoted to it, but the role a person played in potentially influencing the outcome or direction, according to Virginia Canter, the chief ethics counsel at Citizens for Responsibility and Ethics in Washington (CREW) who previously advised government officials on ethics at agencies including the Securities and Exchange Commission and the Treasury Department.
But even if a former government official can’t work on a specific matter they were privy to during their earlier employment, their insight might still be useful to a company.
“You can read about it, but when you’re actually part of dealing with these cases, you know that there are certain factors that are going to either act as mitigating or … that are going to more favorably incline you to bring a case,” Canter said. “It’s just your general knowledge and experience.”
When companies hire former government officials, they may also have the idea that those employees will be viewed more favorably by the current regime.
“Maybe there’s just this general impression that they’re trying to surround themselves with what will be perceived by their former colleagues as the good guys,” Canter hypothesized.
Some might argue that experience could be beneficial to the government in some cases, Canter noted. A former government employee might have a deeper understanding of the importance of compliance or providing certain information to officials, for example, having seen up close what could be at stake if they don’t.
Hauser said it’s unlikely DOJ leadership, especially Kanter, who has made a point to bring more aggressive cases in the tech space and overall, would be overly swayed to view things Google’s way in ongoing matters. But, he said, the impact of former DOJ staff employed by Google could be more influential in an emerging issue, where there’s an opportunity to leave a first impression on senior leadership about it.
The degree of this kind of influence may be relatively small on the level of an individual case, Hauser said, but for a company under such a high degree of regulatory scrutiny, it could add up.
“You’re talking about billions and billions of dollars of potential implications for Google’s net worth,” Hauser said. “Relatively small changes in the scope of the investigation, the timeframe of the investigation, can be very big, even if they don’t go to the overall question of will there be any lawsuits by the Justice Department against Google.”
A Wall Street sign is viewed in front of the New York Stock Exchange.
Eduardo Munoz | AFP | Getty Images
This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.
Here are five key things investors need to know to start the trading day:
1. Secret Santa
The three major indexes are coming off back-to-back winning weeks, with the S&P 500 on Friday rising closer to records it set earlier this year. Stocks’ advances came as investors geared up for the last Federal Reserve policy meeting of the year, which is set to kick off tomorrow.
Here’s what to know:
The delayed release of September’s personal consumption expenditures price index showed core PCE — a key inflation measure — was lighter than economists anticipated on a 12-month basis.
The report gave stocks a boost on Friday, as traders bet the data would encourage Fed officials to cut interest rates this week.
The Fed is set to announce its decision on Wednesday. Traders are pricing in about a 90% likelihood that the central bank cuts interest rates again, according to CME’s FedWatch tool.
Meanwhile, Treasury Secretary Scott Bessent said Sunday that he expects the U.S. economy to finish the year with 3% real GDP growth, even after the hit from the federal government shutdown.
Following its four-day win streak last week, the S&P 500 is now roughly 0.7% away from its intraday record and about a quarter-percent off its closing high.
Todd Combs, portfolio manager at Berkshire Hathaway Inc., waits for the start of the “Berkshire Hathaway Invest In Yourself 5K” race presented by Brooks Sports, a Berkshire Hathaway Inc. company, on the sidelines of the Berkshire Hathaway shareholders meeting in Omaha, Nebraska, U.S., on Sunday, May 4, 2014.
Berkshire CEO Warren Buffett, who will step down as CEO at the end of the year, said in a press release that Combs “made many great hires” for Geico and “broadened its horizons.”
Nancy Pierce, operations chief at Geico, will replace Combs as the business’ CEO. Berkshire also announced that its CFO Marc Hamburg will retire in June 2027 and be replaced by Charles Chang, current CFO of Berkshire Hathaway Energy.
3. L.A. confidential
Dado Ruvic | Reuters
Both Wall Street and Hollywood were left reeling after the announcement of the Netflix–Warner Bros. deal on Friday. Now, the question is if the agreement can get over regulatory hurdles.
President Donald Trump’s administration views the deal with “heavy skepticism,” a senior administration official told CNBC’s Eamon Javers on Friday. Sen. Elizabeth Warren, D-Mass., has already asked for an antitrust review, calling the deal an “anti-monopoly nightmare.”
Believing it has a better chance of securing regulatory approval, Paramount Skydance is weighing whether to bring a bid straight to WBD shareholders in a last-ditch effort to beat Netflix, sources told CNBC’s Alex Sherman. Meanwhile, movie theater operators are wondering whether they can survive if the Netflix deal makes the world’s largest streaming service the owner of a major film studio.
U.S. District Judge Amit Mehta said Google can’t enter into an agreement like it has with Apple, which it pays for search browser usage, unless the deal has termination date of a year or less. Mehta also listed requirements for the makeup of a committee that will decide who Google has to share its data with.
But as CNBC’s Jennifer Elias notes, these weren’t the most drastic punishments on the table. Mehta in September ruled against harsher penalties proposed by the Department of Justice, which could have included the forced sale of Google’s Chrome browser.
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5. Unfading endurance
How often should jeans really be washed?
Catherine Mcqueen | Moment | Getty Images
The global denim market is now a more than $100 billion industry, driven by major retailers such as Levi Strauss and American Eagle. But as CNBC’s Gabrielle Fonrouge reports, its origins are far more humble.
Blue jeans were born out of a woman’s frustration with the frequent rips in her gold miner husband’s denim pants. Her tailor’s solution — adding copper rivets to the garment’s key points of strain — signified the birth of what we know today as the blue jean. In the approximately century and a half since, the pant has become a staple of American fashion that transcends income class and trend cycles.
The Daily Dividend
Here’s what we’re keeping an eye on this week:
Monday: New York Fed’s Survey of Consumer Expectations
Tuesday: Job Openings & Labor Turnover data for October
Wednesday: Fed decision and press conference; Oracle and Adobe earnings (after the bell)
— CNBC’s Sean Conlon, Ryan Ermey, Alex Sherman, Lillian Rizzo, Dan Mangan, Sarah Whitten, John Melloy, Jennifer Elias and Gabrielle Fonrouge contributed to this report. Josephine Rozzelle edited this edition.
IBM CEO Arvind Krishna speaks at the SXSW conference in Austin, Texas, on March 11, 2025.
Andy Wenstrand | Sxsw Conference & Festivals | Getty Images
IBM announced Monday that it is acquiring data streaming platform Confluent in a deal worth $11 billion.
Shares of Confluent soared 29%. IBM stock climbed about 1%.
IBM will pay $31 per share in cash for all of the issued and outstanding common shares of Confluent, according to a release. The transaction is expected to close by the middle of 2026. Shares of Confluent closed at $23.14 on Friday.
Tune in at 10:10 a.m. ET as IBM CEO Arvind Krishna joins CNBC TV to discuss the deal. Watch in real time on CNBC+ or the CNBC Pro stream.
“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI,” IBM CEO Arvind Krishna said in a release.
IBM said the deal will bolster its artificial intelligence offerings as it expects global data growth to more than double by 2028.
Read more CNBC tech news
Wedbush called it a “strong move” from IBM that adds more data processing capabilities to its hybrid cloud ecosystem and is a natural fit to help eliminate data silos for powering AI.
“We loudly applaud this deal as Arvind takes IBM further into the AI Revolution with more acquisitions likely ahead,” the analysts said in a note.
Wedbush maintained its overweight rating on IBM and $325 price target. IBM closed at $307.94 on Friday.
The addition of Confluent fits with IBM’s deal last year to land cloud software maker HashiCorp for $6.4 billion and the 2023 move to acquire Apptio in a deal worth $4.6 billion. Both of those acquisitions were all-cash deals.
Confluent has more than 6,500 clients across major industries and works with Anthropic, Amazon‘s AWS, Google Cloud Platform, Microsoft, Snowflake and others.
Ben Powell, chief strategist for Middle East and Asia Pacific at BlackRock Investment Institute, during a Bloomberg Television interview at the Abu Dhabi Finance Week (ADFW) conference in Abu Dhabi, AD, United Arab Emirates, on Monday, Dec. 9, 2024.
Bloomberg | Getty Images
The wave of capital pouring into artificial intelligence infrastructure is far from peaking, said Ben Powell, chief investment strategist for APAC at BlackRock, arguing the sector’s “picks and shovels” suppliers — from chipmakers to energy producers and copper-wire manufacturers — remain the clearest winners as hyperscalers race to outspend one another.
The surge in AI-related capital expenditure shows no sign of slowing as tech giants push aggressively to secure an edge in what they see as a winner-takes-all contest, Powell told CNBC Monday on the sidelines of the Abu Dhabi Finance Week.
“The capex deluge continues. The money is very, very clear,” he said, adding that BlackRock is focused on what he called a “traditional picks and shovels capex super boom, which still feels like it’s got more to go.”
AI infrastructure has been one of the biggest drivers of global investment this year, fueling a broader market rally, even as some investors question how long the boom can last.
Nvidia, whose GPU chips are the backbone of the AI revolution, became the first company to briefly surpass $5 trillion in market capitalization amid a dizzying AI-fueled market rally that sparked talk of an AI bubble.
The build-out has set off long-term procurement efforts across the tech sector, from chip supply agreements to power commitments. Grid operators from the U.S. to the Middle East are racing to meet soaring electricity demand from new data centers. Companies, including Amazon and Meta, have budgeted tens of billions of dollars annually for AI-related investments.
S&P Global estimates data-center power demand could nearly double by 2030, mostly driven by hyperscale, enterprise and leased facilities, along with crypto-mining sites.
‘Dipping toes into credit market’
Powell also noted that leading tech firms have only begun to tap capital markets to fund the next phase of AI expansion, suggesting additional capital is on the way.
“The big companies have only just started dipping their toes into the credit markets… feels like there’s a lot more they can do there,” he said.
The “hyperscalers” are behaving as if coming second would effectively leave them out of the market, Powell said. That mindset, he added, has pushed firms to accelerate spending even at the risk of overshooting.
Much of that capital, Powell noted, is likely to flow to the companies powering the AI build-out rather than model developers, reinforcing a growing view among global investors that the most durable gains from the AI boom may lie in the hardware, energy and infrastructure ecosystems behind the technology.
“If we’re the recipients of that cash flow, I guess that’s a pretty good place to be, whether you’re making chips, whether you’re making energy all the way down to the copper wiring,” Powell noted, expecting “positive surprises driving those stocks in the year ahead.”