Google faces setbacks amid antitrust rule, advertising disputes
Date
8/18/2024 8:48:47 AM
(MENAFN) This summer has been challenging for Google, with the company's troubles beginning last July when Alphabet, Google's parent company, saw its stock prices tumble following disappointing second-quarter earnings. This drop heightened investor concerns, which were further exacerbated by a recent revelation about a covert agreement between Google and Meta. This secret deal, aimed at targeting advertisements to teenagers, conflicts with Google’s publicly stated policies on safeguarding minors online.
The situation worsened significantly following a landmark ruling from U.S. Federal Judge Amit Mehta last Monday, who determined that Google had breached antitrust laws. The ruling, part of a four-year, 286-page case brought by the U.S. Department of Justice, labeled Google as a "monopoly" and exposed the company’s practice of spending billions annually on exclusive agreements with wireless carriers, browser developers, and hardware manufacturers. Notably, Apple, the maker of iPhones, was a significant beneficiary, having received USD20 billion from Google in 2022 under a long-term agreement to make its search engine the default on Safari.
The court’s findings highlight a pattern of misconduct within the search industry, revealing how Google's vast financial commitments have entrenched its dominance in the search market. While Google argues that its services are beneficial due to being free and superior, the case illustrates how such monopoly power can adversely impact consumers by limiting choices, stifling innovation, and hindering competition. With Google controlling 90 percent of the search market and 95 percent of mobile searches, its extensive reach supports its advertising model and bolsters its data collection capabilities. This case, given the complexity and length of antitrust proceedings against big tech, could set significant legal precedents, potentially influencing future tech litigation and leading to further legal actions against Google.
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