Title: The anti-trust lawsuit against Google: a major turning point for the search engine landscape
Introduction:
On Tuesday, September 12, 2023, an anti-trust trial opened in Washington indicting the technology giant, Google. The US government accuses Google of having abused its dominant position in the search engine market to consolidate its leadership in a monopolistic manner. This case could mark a major turning point in the internet search engine industry.
Accusations of dominance:
The US government accuses Google of having obtained a 90% market share in search by paying billions of dollars to business partners such as Apple. These agreements were allegedly intended to make Google “exclusive” by denying competitors access to search queries and clicks. This practice is considered a violation of anti-trust laws which aim to prevent anti-competitive behavior by companies.
Anti-trust laws:
In the United States, the Sherman Anti-Trust Act of 1890 was the U.S. government’s first attempt to limit anticompetitive behavior by businesses. In Europe, the Treaty on the Functioning of the European Union also prohibits anti-trust practices that restrict competition. These laws aim to maintain a fair business environment and encourage dynamic competition in the market.
Economic impact of Google:
In the second quarter of 2023, Google reported revenue of $74.6 billion. The majority of this revenue (99.61%) comes from the Google segment, which encompasses the company’s historical activities. Google Ads represents 57% of Google’s revenue, followed by Google AdSense with 10.5%. Google’s revenue outside of advertising also saw a significant increase of 24.2% from the previous year.
Possible consequences of the trial:
If Google is found guilty of abusing its dominant position, it could have a major impact on the search engine industry. Corrective measures could be taken, such as financial fines, operational constraints or even corporate restructuring. It could also pave the way for greater regulation of the industry, with measures to promote healthy and fair competition.
Conclusion:
The antitrust lawsuit against Google represents a major event in the internet search engine landscape. While the abuse of dominance charge shines a light on the company’s business practices, the outcome of this lawsuit could have significant implications for the future of Google and the industry as a whole. There is no doubt that this case will be closely followed by industry players and internet users around the world.