Antitrust: Is Google now under threat of breakup?

by time news

COLUMBIAWill Google be forced to abandon its Chrome web browser and even its Android mobile phone operating system? These are possible outcomes that the US Department of Justice is currently discussing.

Sherman Antitrust Act in America Is a Trouble for Google

The Sherman Antitrust Act of 1890 is an antitrust law in the United States that regulates competition between enterprises, passed by the American Congress under the presidency of Benjamin Harrison in 1890. It was named after the original author of the bill, Ohio Senator John Sherman.

The Sherman Act generally prohibits anticompetitive agreements and unilateral conduct that monopolizes or attempts to monopolize a relevant market. The Department of Justice is authorized to initiate legal proceedings to prohibit conduct that violates the Act, while parties injured by the Act are entitled to sue for damages of up to three times the cost of the damage. Over time, federal courts have developed a body of legislation under the Sherman Act that makes certain types of anticompetitive conduct per se illegal and subjects other types of conduct to case-by-case assessments of whether the conduct is a reasonable restraint of trade.

In this sense, is the Antitrust Law the beginning of the end for Alphabet, the internet giant company that Google is affiliated with, or is it just a legal mind game? In any case, a US court Google‘ The debate continues about the possible consequences following the ruling that the US newspaper violated antitrust law and illegally established a monopoly position in the internet search industry.New York Times” ve BloombergAccording to the news agency, authorities are considering various options, including splitting up parts of Google, such as its Chrome web browser or its Android operating system for smartphones. evaluating.

Other possible outcomes include forcing Google to share its data with rivals or abandoning contracts that make its search engine the default option on devices like the iPhone. The Justice Department is also meeting with other companies and experts to discuss proposals to limit Google’s power.

Judge Amit P. Mehta of the U.S. District Court for the District of Columbia, who issued the ruling and is overseeing the case, asked the Justice Department and Google to submit a proposal to resolve the monopoly by Sept. 4. He scheduled a hearing for Sept. 6 to discuss next steps.
In early August, Judge Mehta ruled that Google had illegally maintained a dominant market position in general internet searches and related search ads. Through a network of exclusive contracts and financial incentives, Google had prevented its competitors from gaining a foothold and developing innovative technologies. This had led not only to an excessive concentration of power at Google, but also to higher advertising prices that would not have been possible without the monopoly.

Billions paid to Apple

At the heart of this abuse of power is the ability to set Google as the default search engine on devices like the iPhone and browsers like Firefox. Apple and its billion-dollar payments to companies like Mozilla. This practice gave Google an unfair advantage over its competitors and meant that alternative search engines had little chance of gaining a foothold in the market.

The US courts are now discussing how to restore fair competition. One of the most radical options currently being considered is a Google split. There is a possibility that Google would have to split key businesses, such as its Chrome browser or its Android operating system. Both products are key to Google maintaining its dominant position in internet search.

Alternatively, Google could be forced to share its data with competitors or abandon existing agreements that make Google the default search engine on devices. This could lead to users being able to more easily choose which search engine they want in the future and not automatically be tied to Google.

Another possible measure could be to require Google to make its ad technologies, particularly Google Ads, interoperable. This would mean other search engines would have easy access to these technologies, which could significantly increase competition in the search ad industry.

Google’s current case dates back more than two decades Microsoft It is reminiscent of the antitrust case against Microsoft. At the time, Microsoft was accused of abusing its dominant position in the operating systems market to suppress rival products. Although Microsoft was prevented from breaking up on appeal, the terms of the trial meant that the company was forced to change its business practices. This created space for new companies, including Google, which became one of the dominant players on the internet in the years that followed.

The implications of the current case go far beyond Google. If it results in a split or tough regulation, Apple, which has been targeted by US authorities, could face serious consequences. Amazon and It could set a precedent for other tech giants like Meta. The decision could signal the start of a new era of regulation in which the power of big tech companies is further curtailed.

Neither Google nor the Justice Department have commented on the news. Google has said it intends to appeal the decision ( New York Times , Bloomberg , Die Presse )

2024-08-17 08:40:23

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