Will the US government split apart Google?
Google, the largest search engine in the world, is being accused of creating “pernicious harms” to the people of the United States, and the government of the United States is contemplating filing a lawsuit against the company.
Since a major court verdict in August, which concluded that Google unfairly crushed its competitors in internet search, the Department of Justice (DOJ) has been examining several remedies.
These remedies are in various stages of development.
In the event that the Department of Justice (DOJ) moves forward with the proposed remedies and the judge in the case decides to accept them, it would be very possibly the most significant regulatory intervention in the history of the private technology industry.
Google has been quite vocal in its opposition to the ideas, branding them as “radical” and “sweeping” and asserting that they “risk hurting consumers, businesses, and developers.”
It is estimated that over 90 percent of all searches conducted online are conducted using Google, making it the search engine of choice for almost every internet user in the globe.
The Department of Justice has accused the business of directing people to its search engine by using its other products, like as the Chrome browser and the Android operating system, in order to generate revenue via the sale of advertisements using its search engine.
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The Department of Justice stated in a court filing that “Google’s unlawful conduct persisted for over a decade and involved a number of self-reinforcing tactics.”
According to what was said, this meant that prospective rivals were unable to establish a presence in the market for internet searches.
The report went on to say that since there was a lack of competition, Google was able to charge unusually high fees for advertisements, “while degrading the quality of those advertisements and the services related to them.”
The Department of Justice said that it was investigating “remedies that would prevent Google from using products such as Chrome, Play [its app store], and Android to advantage Google search and Google search-related products.”.
By the 20th of November, it is anticipated that the Department of Justice will provide a more comprehensive collection of ideas.
By the 20th of December, Google will have the opportunity to provide its own recommended solutions.
What is the opinion of Google?
In a blog post, Lee-Anne Mulholland, who is the vice president of regulatory relations at Google, said that the suggestions are an example of “government overreach” and that they may lead to increased costs for customers.
Ms. Mulholland stated that Google offers its Chrome browser and Android operating system for free because they are gateways that “help people access the web and use our products.”
In the event that they were to be split from Google, she cautioned that they would be required to begin producing money in their own right, which would result in an increase in pricing.
Ms. Mulholland also said that by paying firms like Apple and Samsung billions of dollars a year to be the default search engine on their smartphones, they are basically subsidizing those goods. She said this in her argument from the previous point.
As a result, she said that the cost of such things would increase if they ceased paying for them.
Furthermore, Google said that the market for online advertising is very competitive. They cited an article from the Wall Street Journal that stated that an increasing number of individuals are using TikTok and Amazon as alternatives to search engines.
On the other hand, the same report said that Google still held more than fifty percent of the market for ad search.
Is this going to work?
The goal of reducing Google’s hold on the search industry would need more than simply changes to regulations, according to Xiaofeng Wang, senior analyst at Forrester, a company that provides consulting services in the field of technology.
“It could open up more space for competitors, including smaller players, to grow their market share, leading to a more diverse and competitive market,” according to the researcher.
“However, technology innovations and consumer adoption strategies, including marketing, would be important to determine their eventual success.”
Furthermore, according to Ms. Wang, the result of this lawsuit may potentially establish a precedent for the regulation of other major American technology firms.
Additionally, the United States of America has filed lawsuits against Meta platforms, Amazon.com, and Apple, alleging that these companies unlawfully maintain monopolies. Therefore, if the action against Google is successful, it would have an impact on a greater number of digital firms,” she argues.