Table of Contents:
The context of the antitrust case
The United States Department of Justice has taken unprecedented action against Google, a subsidiary of Alphabet, asking a judge to impose the sale of the Chrome browser. This initiative represents a significant attempt to limit the power of one of the world’s most influential technology companies. The lawsuit, initiated during the first Trump administration and continued under President Joe Biden, marks an important step in the fight against monopoly in the technology sector
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The implications for the online search market
According to sources close to the matter, Judge Amit Mehta, who has already ruled that Google has illegally monopolized the search market, will also have to consider measures related to artificial intelligence and the Android operating system. Antitrust officers, along with the states involved in the lawsuit, intend to recommend data licensing requirements. If accepted, these proposals could redesign the online research landscape and influence the nascent artificial intelligence sector
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The consequences for Google and its business model
Owning the world’s most popular web browser is crucial to Google’s advertising business. The company has the ability to monitor the activity of authenticated users and use this data to optimize promotions, which account for the majority of its revenue. In addition, Google has taken advantage of Chrome to direct users to its flagship product in artificial intelligence, Gemini, which could evolve into a virtual assistant for web users
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Google’s reactions and the future of technology
Lee-Anne Mulholland, Google’s vice president of regulatory affairs, criticized the Justice Department’s action, saying the agency is pushing a radical agenda that goes beyond the legal issues of the case. He warned that government intervention of this type could harm consumers, developers and American technological leadership, just when it is most needed. Meanwhile, Google shares declined, falling 1.8% to $172.16 in after-hours trading, after an increase of 25% since
the beginning of the year.
