Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Justice Department on Tuesday sued Google for abusing its dominance in online search and advertising the government's most significant attempt to protect competition since

The Justice Department on Tuesday sued Google for abusing its dominance in online search and advertising the government's most significant attempt to protect competition since its groundbreaking case against Microsoft more than 20 years ago.

And it could just be an opening salvo. Other major tech companies including Apple, Amazon and Facebook are under investigation at both the Justice Department and the Federal Trade Commission.

"Google is the gateway to the internet and a search advertising behemoth," U.S. Deputy Attorney General Jeff Rosen told reporters. "It has maintained its monopoly power through exclusionary practices that are harmful to competition."

Lawmakers and consumer advocates have long accused Google of abusing its dominance in online search and advertising. The casefiled in federal courtin Washington, D.C., alleges that Google uses billions of dollars collected from advertisers to pay phone manufacturers to ensure Google is the default search engine on browsers. That stifles competition and innovation from smaller upstart rivals to Google and harms consumers by reducing the quality of search and limiting privacy protections and alternative search options, the government alleges.

Critics contend that multibillion-dollar fines and mandated changes in Google's practices imposed by European regulators in recent years weren't severe enough and Google needs to be broken up to change its conduct. The Justice Department didn't lay out specific remedies along those lines, although it asked the court to order structural relief "as needed to remedy any anticompetitive harm."

That opens the door to possible fundamental changes such as a spinoff of the company's Chrome browser.

Google vowed to defend itself and responded immediatelyvia tweet: "Today's lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to -- not because they're forced to or because they can't find alternatives."

Eleven states, all with Republican attorneys general, joined the federal government in the lawsuit. But several other states demurred.

The attorneys general of New York, Colorado, Iowa, Nebraska, North Carolina, Tennessee and Utah released a statement Monday saying they have not concluded their investigation into Google and would want to consolidate their case with the DOJ's if they decided to file. "It's a bipartisan statement," said spokesman Fabien Levy of the New York State attorney general's office. "There's things that still need to be fleshed out, basically"

ADVERTISEMENT

President Donald Trump's administration has long had Google in its sights. One of Trump's top economic advisers said two years ago that the White House was considering whether Google searches should be subject to government regulation. Trump has often criticized Google, recycling unfounded claims by conservatives that the search giant is biased against conservatives and suppresses their viewpoints.

Rosen told reporters that allegations of anti-conservative bias are "a totally separate set of concerns" from the issue of competition.

Sally Hubbard, an antitrust expert who runs enforcement strategy at the Open Markets Institute, said it was a welcome surprise to see the Justice Department's openness to the possibility of structurally breaking up Google, and not just imposing conditions on its behavior as has happened in Europe.

"Traditionally, Republicans are hesitant to speak of breakups," she said. "Personally, I'll be very disappointed if I see a settlement. Google has shown it won't adhere to any behavioral conditions."

The argument for reining in Google has gathered force as the company stretched far beyond its 1998 roots as a search engine governed by the motto "Don't Be Evil." It's since grown into a diversified goliath with online tentacles that scoop up personal data from billions of people via services ranging from search, video and maps to smartphone software. That data helps feed the advertising machine that has turned Google into a behemoth.

*Above is a text of an article. Can you please help me with what the article is all about and how it is connected with Network Economics and Economics of information.(The question is complete).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics and Business Strategy

Authors: Michael R. baye

7th Edition

978-0073375960, 71267441, 73375969, 978-0071267441

More Books

Students also viewed these Economics questions

Question

=+ d. Income per worker in Richland is actually

Answered: 1 week ago