The giant Google (GOOG) has just lost a historic trial in the United States. It was accused of violating competition laws by forcing service providers to install its applications by default. What could this change?
Google pinned for anti-competitive practices
This is a decision that could set a precedent. Digital giant Google was sentenced this Monday by a federal court in WashingtonThe company is accused of intentionally blocking its direct competitors in the smartphone sector.
Google has indeed paid huge sums – $26 billion last year alone – to app publishers, phone makers and telecommunications companies. to have its software installed by default on devices. Samsung and Apple have notably accepted the deal.
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Today, Google's search engine is the default on almost all new smartphones. Hence the conclusion of the judge in charge of the case: Google's hegemony is problematic and violates competition law :
“Google is a monopoly and it has acted to maintain that monopoly. […] The agreements signed by Google capture a significant share of the search engine market and prevent its rivals from competing with it.
The decision has already sent shares of Alphabet (GOOG), Google's parent company, plummeting. The latter lost more than 7% immediately after the announcement.in an already tense context on the markets.
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A very hefty fine coming?
The amount of the fine that Google will have to pay is not yet known, but it could be hefty given the sums involved. And beyond the punitive aspect, this is a very symbolic decision. It shows that some tech giants who enjoy a certain hegemony could be worried. We are thinking in particular of Meta and Nvidia.
U.S. Attorney General Merrick Garland welcomed the decision in a statement:
“This is a historic victory for the American people. No company is above the law, and the Department of Justice will continue to enforce our laws against anticompetitive practices.”
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Moreover, this is not the only ongoing lawsuit for Google.. Another lawsuit was filed against the tech giant in 2023, this time targeting the advertising sector.. Here too, Google is accused of acting in an anti-competitive manner. This trial is expected to begin next September.
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Source: CNN
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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