Welcome to the August 2026 edition of The Bug.
In this edition, state attorneys general emerge as a driving force in antitrust enforcement, securing wins independently of federal regulators and expanding into new areas like AI, amid broader global enforcement activity.
The Feature
State AGs: The New Frontier of Antitrust Enforcement
State attorneys general (State AGs) are now shaping the development of antitrust law, with and without federal enforcer co-plaintiffs. From securing favorable jury verdicts and advocating for “break ups” to forming state coalitions to file enforcement actions that pave the way for federal enforcement actions, State AGs are becoming increasingly involved in antitrust enforcement. This involvement extends to new markets, including the AI stack.
Most recently, on July 20, a coalition of 12 State AGs successfully petitioned a federal district court to temporarily block the Paramount Skydance–Warner Bros. merger, without a federal co-plaintiff. This win is another notch in the belt for State AGs who, since at least as early as December 2020, have achieved success in enforcing the antitrust laws, even without the assistance of federal enforcers. The increased role that State AGs now play in antitrust enforcement creates challenges for private parties, often requiring them to engage in dual-track (federal and state) negotiations.
Read our more detailed update here (it begins on page 4).
The Niche
The second half of August is generally a quiet period in Brussels. This year, however, has seen a flurry of changes by gatekeepers under investigation in connection with the European Union’s Digital Markets Act (DMA):
- On August 18, Apple announced App Store changes for the European Economic Area (EEA), relating to business terms and alternative distribution. The European Commission (EC) will review the announced changes, in the context of both its ongoing Article 6(4) DMA noncompliance investigation and last year’s Article 5(5) noncompliance decision.
- On August 30, Google announced that it had stopped applying certain search-ranking demotions (under its “site reputation abuse” policy) in the EEA. Google has said that the effect of manual actions under the policy would no longer apply to search results in the EEA, but that it will continue to notify publishers when it considers they have breached the policy.
Other Interesting Antitrust Developments
U.S. The Federal Trade Commission is reportedly investigating Epic Systems Corp., the largest electronic health records vendor, for allegedly abusing its dominant position through employee noncompete agreements and blocking rival vendors from accessing patient data and information.
EU On July 23, 2026, the EC found Google in breach of the DMA’s self-preferencing and anti-steering rules in relation to Google Search and Google Play. According to the decision, Google must implement measures within 60 days to ensure fair treatment of rivals in Search and to allow app developers to freely communicate with users, promote offers, and conclude contracts, inside and outside Google Play.
Germany On August 17, 2026, Germany’s Federal Cartel Office closed its investigation into Apple’s App Tracking Transparency framework after Apple offered binding commitments. Apple agreed to make consent prompts for its own and third-party apps more comparable and to simplify the consent process for third-party app providers.
What’s in the Pipeline?
U.S. The full U.S. Senate is expected to vote on Adam Candeub, the administration’s nominee to lead the Department of Justice Antitrust Division, after Congress returns from its summer recess.
EU On August 31, the European Commission designated one company as a Very Large Online Search Engine and two companies as Very Large Online Platforms under the Digital Services Act, giving the companies four months to comply with the act’s obligations to assess and mitigate systemic risks (including effects on minors, election integrity, and public security).
EU After wrapping up a number of investigations in July, the DMA case teams are returning to Brussels ready to start work on new cases, widely expected to include a number focused on AI.
