Update (1130ET): AG William Barr issued a statement on the Google lawsuit, saying “millions of Americans rely on the Internet and online platforms …” and that “competition in this industry is vitally important.”
* * *
Update (1030ET): Deputy Attorney General Jeffrey Rosen led a brief phone briefing with reporters on Tuesday where he essentially confirmed all of the WSJ scoop reports from this morning.
Rosen added that the lawsuit accused Google of violating Section 2 of the Sherman Act, the same statute that was used during Bill Clinton’s presidency to conduct a host of antitrust litigation, including the landmark case against Microsoft.
“For years, there had been concerns about business practices leading to unprecedented concentration in our economy,” Rosen began, adding that the antitrust division had been reviewing Google and its antitrust practices for over a year now. Rosen called Google the “gatekeeper of the Internet” and “one of the richest companies on the planet”, saying it has maintained its monopoly through “anti-competitive practices” necessary to “enable competition”.
If the DoJ doesn’t act, Rosen said, Americans could risk missing out on the next wave of business. If that happens, Americans may never see “the next Google.”
“We plan to continue our review of the leading Internet technology platforms in the market,” he said.
Rosen added that AG Barr has made the matter “a priority” within the ministry. Rosen thanked the DoJ’s antitrust division and the DoJ’s partners in every state capital for all of their hard work on the case.
Read the full complaint below:
* * *
Update (1000ET): An interesting tweet from Fox Business senior / fitness enthusiast journalist Charlie Gasparino.
Shares have climbed since the opening, after reports of the Google lawsuit hammered US futures.
While waiting for the DoJ’s briefing on the lawsuit, it should be noted that Sundar Pichai, CEO of Google Alphabet owner, will testify on Capitol Hill next week.
As to why Democratic states did not sign the antitrust lawsuit, CNBC’s Ylan Mui reported – citing details in WSJ and NYT reports – that there was some resistance from staff attorneys , and which the Democratic states ultimately refused to sign, along with many Republicans. States, which are now all free to bring their own charges.
A guest who appeared on CNBC following Mui’s report pointed out that one of the biggest differences between Google and Microsoft is that Google’s products are mostly free (to end users) and are also hugely popular. .
* * *
Update (0915ET): Reuters has more details of Google’s lawsuit on Tuesday, which the DoJ has now confirmed.
- GOOGLE CASE IS THE MOST SIGNIFICANT ANTITRUST ACTION IN DECADES
- GOOGLE HAS ABUSED ITS DOMINANT POSITION IN RESEARCH MARKET, SAYS US
- GOOGLE ACKNOWLEDGED BY US OF ABUSE OF MARKET POWER IN THE CASE OF LANDMARK
- ANTITRUST GOOGLE US CASE JOINED BY ELEVEN STATES
More official details are expected at a briefing scheduled for Tuesday morning, but many key details have already emerged in the press.
Republican Senator Josh Hawley accused Google of retaining power through “illegal means” and called the trial “the most significant antitrust case in a generation.” Reuters also notes that the federal trial marks a rare moment of courtesy between the Trump administration and progressive Democrats like Senator Elizabeth Warren, who called for “swift and aggressive action.”
Sen Ted Cruz earlier went to CNBC’s Squawk Box to trash Google and its Big Tech peers for abusing their market position and censoring conservative voices.
Some may recall that Google settled an FTC antitrust investigation of Google on an alleged bias in its search practice that favored Google’s own products. He also settled a trio of major antitrust lawsuits with EU antitrust chief Margrethe Vestager.
Google recorded revenues of $ 162 billion in 2019, more than the GDP of the entire Hungarian nation.
This might only be the start for Google, as other lawsuits could be considered, as investigations by state attorneys general into Google’s broader business are underway, as well as an investigation into its digital advertising business. wider. A Texas-led state AG group is reportedly expected to file a separate lawsuit focused on Google’s digital advertising business as early as November, while an AG-led group in Colorado is reportedly in the process of filing. consider a broader lawsuit.
* * *
Update (0825ET): Google news rocked the market, as investors consider DoJ prospect, partnered with state AGs, launching landmark lawsuits against more big tech companies, pulling the carpet out of the submarket .
The case against Google will be the first major DoJ antitrust lawsuit to tackle big tech since the DoJ sued Microsoft in the late 1990s, a lawsuit that began in the year Google was founded. in a garage in the Bay area.
According to details of the lawsuit leaked to the WSJ – details that were previously described in the investigation leaked while the investigation was still ongoing – Google is accused of maintaining its status as ‘guardian of the Internet’ ‘via an illegal exclusion and lockdown network. agreements that effectively exclude competitors. These offers include all the money Google pays phone makers, carriers, and makers of browsers like Apple’s Safari to ensure that Google’s search engine is preset by default on millions of smartphones, even those produced by competitors like Apple. DoJ also conflicts with Google’s Android operating system, which preloads the Google search app in such a way that it cannot be removed.
These revenue sharing deals have allowed Google to ensure that no search competitor can challenge its dominance. Google manages about 80% of all Internet searches performed in the United States each year.
During an interview with Sen Ted Cruz on CNBC, the senator pointed out that the lawsuit comes just a week after Twitter and Facebook worked to shut down a series of New York Post stories alleging wacky and corrupt behavior by Hunter Biden and members with his family revealing that the scope of their international influence sale was broader than what candidate Joe Biden has led the public to believe.
If the big tech companies are using their monopoly power to try to silence political rhetoric, then the government is not going to hold back, Cruz said.
DOJ antitrust chief Makin Delrahim sat down for an interview with CNBC’s David Faber yesterday. Although he was recused from the Google case, he hinted at the upcoming charges. Of course, it could be years before this case reaches a trial or settlement (which was the outcome in the Microsoft case).
* * *
Just as we saw about 6 weeks ago following a report in The New York Times, the DoJ has finally filed a massive antitrust lawsuit against Google, the monopoly of the advertising giant which in June halted the running of ads on this website, according to the WSJ. The landmark antitrust case will focus on alleged Google-controlled monopolies in search and search advertising. These companies are the cornerstone of profits for Alphabet, owner of Google. At least 11 state GAs are expected to join the prosecution (notably, they are all from states controlled by the GOP).
Google shares slide on the news.
The DoJ has scheduled a media availability for 9:45 a.m. ET. While no topic has been announced, it’s a safe bet that the Google lawsuit, which has been ongoing since at least January, when the DoJ allegedly began to bolster a team that reportedly focused on prosecuting cases. antitrust against Alphabet and a handful of other big names in tech.
The case is expected to go to federal court in Washington DC, forcing Google out of its California “comfort zone”.
#DoJ #finally #files #antitrust #lawsuit #Google #Dateway