The Risks of the Antitrust Lawsuit Lost by Google: Last August, Google, a subsidiary of Alphabet,
suffered a significant setback when a U.S. judge found it illegally monopolizing the search market.
This ruling represents an important step in the Biden administration’s efforts to enhance competition in the market.
In this report, we explore the details of this case, its Risks, and its potential impact on Google and its future.

Contents

The Case Against Google

What Happens Now

Google’s Response

Antitrust Laws

Other Antitrust Cases Facing Google

Google’s Practices

Biden Administration

What Is the Case Against Google

The U.S. Department of Justice and state attorneys general accused Google of exploiting its dominance in the online search market,
which controls about 90% of search queries by paying billions of dollars to tech companies, smartphone manufacturers,
and telecom providers to maintain their market monopoly. Among these companies are Apple and Samsung,
which agreed to make Google the default search engine in exchange for a share of advertising revenues.
The plaintiffs argued that these agreements limited access to competing search engines like DuckDuckGo and Microsoft’s Bing,
preventing them from obtaining the data needed to improve their services.

What Happens Now?

The ruling focuses on whether Google violated antitrust laws,
with plans for a separate trial to address these illegal practices.
According to reports, the Department of Justice is now considering possibly breaking up Google,
which could involve divesting its Android operating system and Chrome browser and potentially selling its AdWords program.

What Is Google’s Response to the Ruling?

Google plans to appeal the ruling, asserting that its dominance in the search market is due to the quality of its products and its investments in innovation.
While it acknowledges paying to have its search engine pre-installed on devices,
it argues that these deals are legitimate and likens them to cereal companies paying for prime shelf space in grocery stores.
Google representatives also claim users can easily access competing search engines with a single click.

What Are Antitrust Laws?

Antitrust laws are designed to protect competition in the market.
While U.S. law does not prohibit companies from becoming large and powerful,
it does forbid them from exploiting their dominant position to unlawfully prevent competitors from entering the market.
Such practices can lead to severe penalties, including the forced breakup of companies.

What Other Antitrust Cases Is Google Facing?

Google is facing several antitrust lawsuits, including one led by Texas and 16 other states,
accusing Google of monopolizing online advertising technology.
The Department of Justice also filed a separate lawsuit in January 2023
concerning Google’s advertising technology business, with the case expected to go to trial in September.

Are Google’s Practices Under Scrutiny Elsewhere?

Google is under scrutiny in Europe, where the European Commission has imposed fines totaling over €8 billion since 2010.
The company faces accusations of favoring its advertising technology over that of competitors.
Under the new European Digital Markets Act, Google and other significant companies
must adhere to strict rules to prevent them from exploiting their dominance at the expense of competitors.

What Other Antitrust Cases Is the Biden Administration Pursuing?

The Biden administration continues the antitrust campaign that began under former President Donald Trump.
These efforts include lawsuits against Amazon and Apple and the ongoing lawsuit against Facebook,
which seeks to dismantle the company due to its monopolistic practices in the social media space.

The Risks of the Antitrust Lawsuit Lost by Google

The Risks of the Antitrust Lawsuit Lost by Google

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