The US Government is suing Google, here’s why

By: |
October 21, 2020 2:57 PM

The last time the US had filed a lawsuit against a tech giant was in 1998, when it had sued Microsoft for indulging in anti-competitive activities.

There is some respite, however, that the case is likely going to take years before it is resolved.

Antitrust law: Tech giant Google has been sued by the US Department of Justice. The US has accused the tech major of using its status and influence to corner its competitors. This marks the biggest thrown towards the tech majors in decades. The lawsuit filed by the Department of Justice could cause Google to split. This would have huge implications considering the stature that the tech major had managed to build over the years. Google has now become synonymous with the internet, and its variety of solutions has been helping billions of people every day.

There is some respite, however, that the case is likely going to take years before it is resolved.

Microsoft had managed to come out of the lawsuit as one entity due to a settlement. On the other hand, the government’s case against tech major AT&T back in 1974 had caused Bell Systems to be broken up.

The complaint states that Google has indulged in unlawful practices to ensure that it remained the market leader in search and search advertising on the internet. As many as 11 states have signed the complaint, which states that if a court order is not passed against it, Google would continue to carry out such practices to quash any competition and innovation, resulting in the reduced choices for the customers.

It stated that Google was accountable for almost 90% of all search engine queries in general in the US, and it reached almost 95% of searches on mobiles.

It was found by Attorney General Bill Barr’s investigators that Google was not competing based on the quality of search results it offered, but was instead purchasing its success by paying smartphone manufacturers and others. Due to this, Barr said, no one could feasibly challenge Google and the dominance it held over the search and search advertising.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Google announces best games, apps of 2020; details inside
2Zoom revenue surges 4x two quarters straight as video conferencing platform reports $777.2 million earnings in Q3 2020
3Xiaomi zooms past Apple in global smartphone sales in third quarter; Samsung holds pole position