Originally Posted: Publish0x
As is known to everyone, Google is one of the largest and most powerful companies in the world, but also one of the most questioned for its alleged abuse of a dominant position in the search and online advertising market. Since this year, the technology giant has been facing the largest antitrust lawsuit from the United States government in decades, which could end its dominance on the internet.
The lawsuit, filed by the Department of Justice and 11 states, accuses Google of paying billions of dollars each year to companies like Apple, Samsung or Mozilla to make its search engine the default on their devices and browsers. These agreements, according to the complaint, have allowed Google to control 80% of online searches in the United States and 91% globally, thus excluding competition and harming consumers.
For its part, Google defends itself by arguing that its practices are legal and beneficial for users, who choose to use its service because it offers them the best experience and quality. In addition, it states that there are alternatives such as Bing, Yahoo or DuckDuckGo, which users can easily switch to if they wish. The Californian company considers that the lawsuit is "extremely flawed" and that it would not help consumers.
However, the plaintiffs argue that Google has created a barrier to entry for its rivals, who cannot compete with its resources and reach. Thus, Google would have become the "guardian" of the Internet, capable of influencing what users see and do on the Internet. This would have negative consequences for innovation, diversity, privacy and freedom of expression.
Notably, the antitrust lawsuit against Google is the largest since the one filed against Microsoft in 1998, which ended with an out-of-court settlement in 2001. The case could last for years and have a major impact on the technology sector, which is under the scrutiny of regulators both in the United States and in other countries. Some experts suggest that a possible solution would be to split Google's business into several parts, as was done with AT&T in the 1980s.
The split of Google's business could have different effects on users and consumers, depending on how it is carried out and how competitors and regulators react. Some possible effects could be:
📌 Greater competition and diversity: If Google were to split, it would imply that its search, advertising, YouTube, Gmail, Maps, Chrome, Android and other services become independent companies, this could favor the entry of new competitors and innovation in the market. Users could have more options and alternatives to access information, entertainment, communication and other online services. In addition, Google's power and influence over what users see and do on the Internet could be reduced.
📌 Lower quality and efficiency: On the other hand, the division of Google would mean a loss of synergies and economies of scale between its different services, this could negatively affect their quality and efficiency. Users may experience less integration, customization, and speed in Google services, as well as greater complexity and cost to access them. Furthermore, the added value that Google offers by combining its data and technologies to offer innovative solutions to social and environmental problems could be lost.
📌 Greater privacy and security: Another possible effect of the Google division is to improve the privacy and security of users and consumers. Having less data centralized in a single company could reduce the risk of leaks, theft or misuse of users' personal information. Likewise, control and transparency could be increased over how data is collected, stored and used by the different companies that would emerge from the Google division.
📌 Lower profitability and growth: Finally, the division of Google's business could have a negative impact on the profitability and growth of the company and its shareholders. Faced with increased competition and regulation, as well as higher operational and legal costs, Google could see its revenue and profits reduced. This could also affect their ability to invest in research and development, as well as social and philanthropic projects.
The lawsuit against Google is just beginning, it is difficult to predict with certainty what its outcome will be, however, it is likely to have a significant impact on the share price of this technological giant, the three most logical scenarios could be:
📌 Google wins the case and Google's stock price could recover to pre-lawsuit levels.
📌 Google loses the case, but no significant structural measures are imposed, Google's share price could fall, but not significantly.
📌 Google loses the case and significant structural measures are imposed, Google's share price could fall significantly.
A final comment. Google is not the only technology company that is being investigated for its monopolistic practices, other companies such as Facebook, Amazon or Apple are also under scrutiny by the authorities for their dominance in social networks, e-commerce or mobile devices. These companies represent a large part of the digital economy and have enormous power and influence in society. The question is whether these companies have used that power fairly and responsibly, or whether they have abused it to eliminate their competitors and control the market. As the saying goes: "When the bulls fight, he who watches crouches", so we only have to "sit and wait" to see how everything ends and what effects and/or consequences it will have for us, the users.
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