According to a number of reports, the Justice Department of the United States is making a plan to do an antitrust probe into Alphabet’s Google subsidiary. The Wall Street Journal breaks this news before any other news agency.
The report reflects that the discussion from the public and the politicians about might the big companies based on technology should break up. Government of US pushback on Alphabet in search might smash at the core among the world’s highly valued traded firms publically.
In 2018, Alphabet racked over $136.8 billion in revenue with 85% of it generating from advertising. According to NetMarketShare, Google controls over seventy percent of the search engine market. In the past, Google also faced antitrust pressure.
Google said in 2013 that it would change some regulations after its agreement with the United States Federal Trade Commission. The FTC concerned that few of the business practices of Google could stifle competition.
According to the latest annual report of Alphabets, the firm received an antitrust complaint in 2010 from the European Commission about the ranking of shopping ads and search results. After that antitrust complaint, Google faced a fine of 2.7 billion in 2017. The EC complained about practices in 2017 linked to the Android operating system of Google, leading to a 5.1 billion dollars charge in 2018.
The European Union gives an order to Google in March to pay approximately $1.7 billion because of its advertising behavior. In the United States, Google has also come under political pressure in the recent past. Trump criticized different tech giants; moreover, he accused Google of political bias in its search results.
Sen. Elizabeth Warren, the presidential candidate of 2020 elections, pressed for breaking up tech firms such as Google. Warren said that the current laws of antitrust empower regulators at deferral level to splitting up mergers that decrease the competition.