Wallstreetcn
2024.08.15 08:52
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FTC praises the significance of the "Google monopoly case" in its article, implying that "tech giants should be broken up."

The FTC stated that Google's monopolistic behavior has seriously harmed millions of users in the United States, "If monopolists are allowed to enjoy the benefits of illegal monopolies while avoiding the costs of restoring competition that they illegally eliminated, this will weaken deterrence."

In the highly anticipated Google antitrust lawsuit, the Federal Trade Commission (FTC) of the United States recently submitted a weighty brief, adding a new twist to this long-standing legal battle.

On the 12th, the FTC submitted a brief to the court in support of Epic Games' antitrust lawsuit, accusing Google of monopolistic behavior and strongly recommending the court to take strict measures against such behavior.

The FTC emphasized that strict enforcement of antitrust laws is key to maintaining fair market competition, and the court has the authority to require Google to take active measures to eliminate the negative impact of its monopolistic behavior on the market:

When a company engages in business practices that are deemed to violate antitrust laws, the court has the authority to order all necessary measures to restore competition in the affected market to correct these illegal actions.

Although the FTC did not directly state that Google should be broken up, it still implied the possibility of using breakup as a negotiating strategy:

In cases like Epic Games v. Google, it is usually necessary to consider network effects, data feedback loops, and other key features of the digital market.

This can help potential competitors overcome the advantages that existing digital platforms typically enjoy, including network effects and data dominance.

But the truly important information appeared at the end of the article. The FTC added, "Google's monopolistic behavior has seriously harmed millions of American users." "If monopolists are allowed to enjoy the benefits of illegal monopolies while avoiding the costs of restoring competition that they illegally eliminated, this will weaken deterrence."

Epic Games sued Google in 2020, alleging that Google violated antitrust laws by monopolizing two markets: the Android app distribution market and the payment processing market. In addition, Google benefited from accessing user data. Epic stated, "Google has positioned itself as an inevitable intermediary, and all app developers and Android users who want to reach Android users must go through it."

In December 2023, a jury in the California district court ruled in favor of Epic, finding that the game developer had proven that Google violated antitrust laws. District Judge James Donato has yet to decide what relief should be provided to Epic.

Some analysts believe that in addition to breaking up Google, there are lighter punitive measures, such as forcing Google to share more data with competitors and taking measures to prevent Google from gaining unfair advantages in AI products. If a breakup is indeed necessary, Google may first be forced to divest its Android operating system and Chrome browser