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Indian Express
a day ago
- Business
- Indian Express
Google as a ‘monopolist': What remedies could a US court suggest for curbing its market dominance?
After calling Google a 'monopolist' last year, US Judge Amit Mehta in the next few days is expected to deliver a judgement on the proposed remedies address the problem. In two separate cases in the United States in 2024 and 2025, courts held that Google monopolised key digital advertising technologies, and violated antitrust law by monopolising open-web digital advertising markets, respectively. Subsequently, the US Department of Justice (DoJ) advocated selling Google's popular Chrome browser, among other things, even as Google resisted major changes to the existing model. The upcoming judgment will consider the solutions suggested by the DoJ to curb Google's monopoly. Its effects may be felt across the world, including in India. Here is what to know. In recent years, US government agencies have filed cases against several big tech companies, such as Amazon, Meta and Google, accusing them of stifling competition for other market players. The DoJ and several US states sued Google in 2020 for illegally cementing its dominance, in part by annually paying the likes of Apple and Samsung billions of dollars to have Google automatically handle search queries on smartphones and web browsers. In August 2024, Judge Mehta delivered a landmark verdict which paved the way for subsequent action to address the issue of market dominance. Specifically, he told the DoJ and the states that brought the antitrust case (including California, Colorado, New Jersey and New York) to submit solutions to correct Google's search monopoly. What did the DoJ and the states suggest? The DoJ and the states said in a petition last year that to reverse the effects of Google's monopolistic behaviour, the solutions 'must enable and encourage the development of an unfettered search ecosystem that induces entry, competition, and innovation as rivals vie to win the business of consumers and advertisers.' Their proposal discussed the possibility of Google divesting from Android, the mobile operating system that runs on the smartphones of major companies, such as Samsung, Xiaomi, Moto, etc. This would prevent Google from using Android to 'exclude rival search providers' since the phones currently have Google Chrome as the default search engine. It further suggested that Google should be banned from entering into exclusive agreements with content publishers (such as news websites) and from acquiring its competitors or potential competitors in the general search domain without prior approval. During the final arguments this year, the DoJ also argued that Google could use its artificial intelligence products to strengthen its monopoly in web search and take the data from its powerful search index to dominate AI, according to an NPR report. 'Google's search index is essentially an enormous database of information from billions of webpages,' the report said. Therefore, the remedies must also extend to AI, the DoJ said. And how has Google responded? In a blog last year, Google parent company Alphabet's Chief Legal Officer Kent Walker called the proposal 'staggering' and one that pushes a 'radical interventionist agenda'. He said, 'DoJ's approach would result in unprecedented government overreach that would harm American consumers, developers, and small businesses — and jeopardise America's global economic and technological leadership at precisely the moment it's needed most.' The company has also argued that the emergence of AI models like ChatGPT, Perplexity and DeepSeek indicated a competitive environment. This year, Google's attorney argued in court that the data privacy of Chrome's billions of users will be at risk if some other company takes over. NPR reported the DoJ as countering the view that only Google could keep Chrome safe. Lee-Anne Mulholland, the Vice President for Google's Regulatory Affairs, wrote in April that the DoJ's proposal would make it harder for people to get the services they prefer. 'People use Google because they want to, not because they have to,' she said. Google's own proposals include giving smartphone makers 'additional flexibility' in preloading multiple search engines on the devices, rather than only Chrome. So what happens now? There was some concern earlier about the continuity of the case under a new government after the presidential elections, but the Trump administration has supported checking Google's influence. A Fortune report recently estimated the broader possible impact on a company like Apple, which Google pays between $15 billion and $20 billion per year to ensure its search engine is the default on Apple devices. The full impact depends on the kind of remedies that are eventually ordered, even though Google will likely legally challenge them. India, meanwhile, has had its own regulatory proceedings against Google in recent years. In October 2022, the Competition Commission of India imposed a penalty of Rs 1,337 crore on Google. It held that mandatory pre-installation of the Google Mobile Suite (Google Search, YouTube, Gmail, etc.) on Android devices with no option to uninstall the apps was an abuse of Google's dominant market position. Following this verdict, Google announced that it would allow Indian users to choose a default search engine. While Judge Mehta's 2024 judgment limited itself to the 'relevant geographic market' of the United States, and India does have other smartphone brands with their own browser offerings (such as Xiaomi and Opera), Google still holds a significant position here. The Google experience in the US could thus impact how regulators deal with it elsewhere.
The National
30-07-2025
- Business
- The National
Google, Chrome and default settings: what's at stake for Alphabet's anti-trust remedy
An antitrust remedy decision that could bring an end to Google's search dominance is expected soon. During closing arguments in late May, US District Judge Amit Mehta indicated he would be likely to release his remedy order for Google by early August. According to court filings, Mr Mehta on Tuesday asked the search company to file a brief to clarify an issue related to device manufacturers who have agreed to use the company's Chrome browser by default. Mr Mehta gave Google until August 1 to file the brief, which likely means he is nearing a decision. Because of lengthy litigation, which began in 2020, followed by the remedy portion of the trial, which began this year, it's easy to forget that Mr Mehta had decided in late 2024 that Alphabet-owned Google unfairly used its search monopoly to hurt competition, and as a result, harm consumers. And in a separate antitrust case, Google was also found to have unfairly boxed out competition in search advertising by coupling its publisher advertising server and advertising exchange technologies. The search giant is appealing part of that decision. Throughout the remedy portion of the trial, which heard testimony from technology executives, economists and regulatory experts, the Justice Department made clear that it wants Mr Mehta to enact far-reaching penalties against Google that would be a warning to other companies, while also providing more choice for consumers. Federal prosecutors want Google to divest its Chrome browser from its portfolio, and it wants the tech giant to share coveted search data with competitors. Yet, Google and its bench heavy with lawyers have pushed for a far less stringent remedy that would allow it to retain control of its Chrome browser, while also giving device manufacturers, and ultimately users, more windows of opportunity to change their default search provider within browsers. 'Our proposal allows browsers to continue to offer Google Search to their users and earn revenue from that partnership … but it also provides them with additional flexibility,' Google said during closing arguments in May. The decision has browser companies like Mozilla, maker of the Firefox browser, walking a tightrope between wanting more market share amid Google's Chrome dominance, and also not upsetting existing revenue streams provided by contracts with Google. 'Essentially, the remedies may hand even more power to Big Tech, threatening long-term competition and the health of the open web,' read an email from a public relations firm hired by Mozilla. Google's influence is unrivalled and its deep pockets have allowed it to secure a presence on various devices through lucrative contracts with companies like Apple. Depending on the severity of the remedy, Apple could lose out on reoccurring payments from Google. Eddy Cue, one of Apple's senior executives, took the witness box during the remedy hearings in May, claiming that Google's power was beginning to erode, with users starting to pivot from search engines to AI chatbots. Sceptics of antitrust intervention might look at those comments and say that a harsh penalty on Google would be superfluous, and that the free market should be allowed to, eventually, dethrone the company. Others, however, might point to the wealth that's been stockpiled from Google's search dominance, and how that wealth has enabled the company to create an arsenal of AI technologies like Gemini and its research division DeepMind, and that the Alphabet-owned company would just find ways to abuse its power in the emerging sector. Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown University in Washington, who has studied antitrust policy for several decades, acknowledged in a previous interview with The National that Google's dominance presents a unique challenge for Mr Mehta. He said that with Google's recent antitrust defeat over its advertising business and the forthcoming decision related to browsers and search dominance, there could be a large amount of co-operation between the courts involved. But Prof MacCarthy said that the current regulatory agencies might not be up to the challenge of properly enforcing the remedy. 'My view is that this would be better done by a new digital regulatory agency,' he said. That said, given the sweeping layoffs in the federal government under President Donald Trump, there's little indication that the White House has any appetite for a new regulatory agency. All of the moving parts, combined with a dismantling of the federal workforce, invariably forces Mr Mehta to approach his decision with delicacy, and it will also likely work in Google's favour. Yet, even if the remedy is all bark and no bite, it could be enough of a distraction that a technology company like Google dreads amid a rapid rise in competitors.
NZ Herald
23-07-2025
- Business
- NZ Herald
Google's AI investments drive $28.2b profit amid legal battles
Ad revenue at YouTube continues to grow, along with the video platform's subscription services, Alphabet reported. YouTube's ad revenue and premium subscriptions are rising. Photo / Getty Images Alphabet's cloud computing business is on pace to bring in US$50b over the course of the year, according to the company. 'With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately [US]$85 billion and are excited by the opportunity ahead,' Pichai said. Alphabet shares were essentially flat in after-market trades that followed the release of the earnings figures. Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads. The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age. The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages. However, advertising remains Google's financial bedrock. Google and its rivals are spending billions of dollars on data centres and more for AI, while the rise of DeepSeek, the lower-cost model from China, raises questions about how much needs to be spent. DeepSeek, one of Google's competitors, raises concerns over data centre spending. Photo / Getty Images Anti-trust battles Meanwhile, the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US anti-trust case. During the US summer of 2024, Google was found guilty by a federal judge in Washington of illegal practices it used in order to establish and maintain its monopoly in online search. The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default. District Judge Amit Mehta is considering 'remedies' in a decision expected in the coming days or weeks. In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine. District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers. Combined, the courtroom defeats have the potential to split Google up and curb its influence. Google said it is appealing both rulings. – Agence France-Presse
Yahoo
23-07-2025
- Business
- Yahoo
Google beats on Q2 earnings but increased capex spending sends stock lower
Google parent Alphabet (GOOG, GOOGL) reported its second quarter earnings after the bell on Wednesday, beating expectations on the top and bottom lines on the strength of its advertising and cloud businesses. But the company said capital expenditures will climb to $85 billion. Google previously projected $75 billion. Alphabet stock fell more than 2% following the announcement. For the quarter, Google saw adjusted earnings per share (EPS) of $2.31 on revenue excluding traffic acquisition costs (TAC) of $81.2 billion. Analysts were anticipating Adj. EPS of $2.17 on revenue ex-TAC of $79.6 billion. The company posted revenue of $71.3 billion during the same period last year. Advertising revenue came in at $71.3 billion versus expectations of $69.6 billion. Search revenue topped out at $54.1 billion versus an anticipated $52.7 billion. YouTube ad revenue was $9.8 billion versus expectations of $9.5 billion. Google Cloud Platform revenue hit $13.6 billion. Analysts were looking for $13.1 billion. Read more: Live coverage of corporate earnings Google, like its other Big Tech peers, continues to splash huge amounts of cash on its AI buildout. This year, the company is expected to drop $75 billion expanding its AI capabilities, including on massive data centers running on both its own home-grown chips and Nvidia's processors. Google is also facing potentially devastating consequences from a judge's decision that held it liable for antitrust violations in search. Judge Amit Mehta of the US District Court for the District of Columbia is expected to issue a ruling on "remedies" that follows the Justice Department's victory against the company sometime next month. Judge Mehta held that Google violated antitrust law by boxing out rivals in the online search engine and online search text markets. To restore competition, he could order Google to refrain from longstanding exclusivity deals with the likes of Apple (AAPL) that set Google Search as the default option on the company's smartphones. Mehta could also force Google to sell off its Chrome browser, the most popular web browser in the world. That would put a dent in Google's all-important search business, a dangerous proposition for the company. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
Google beats estimates on Q2 earnings results, but increased cap-ex spending sends shares lower
Google parent Alphabet (GOOG, GOOGL) reported its second quarter earnings after the bell on Wednesday, beating expectations on the top and bottom lines on the strength of its advertising and cloud businesses. But the company said capital expenditures will climb to $85 billion. Google previously projected $75 billion. Shares of Alphabet fell more than 1%. For the quarter, Google saw adjusted earnings per share of $2.31 on revenue excluding traffic acquisition costs (TAC) of $81.2 billion. Analysts were anticipating Adj. EPS of $2.17 on revenue ex-TAC of $79.6 billion. The company posted revenue of $71.3 billion during the same period last year. Advertising revenue came in at $71.3 billion versus expectations of $69.6 billion. Search revenue topped out at $54.1 billion versus an anticipated $52.7 billion. YouTube ad revenue was $9.8 billion versus expctations of $9.5 billion. Google Cloud Platform revenue hit $13.6 billion. Analysts were looking for $13.1 billion. Read more: Live coverage of corporate earnings Google, like its other Big Tech peers, continues to splash huge amounts of cash on its AI buildout. This year, the company is expected to drop $75 billion expanding its AI capabilities, including on massive data centers running on both its own home-grown chips and Nvidia's processors. Google is also facing potentially devastating consequences from a judge's decision that held it liable for antitrust violations in search. Judge Amit Mehta of the US District Court for the District of Columbia is expected to issue a ruling on "remedies" that follows the Justice Department's victory against the company sometime next month. Judge Mehta held that Google violated antitrust law by boxing out rivals in the online search engine and online search text markets. To restore competition, he could order Google to refrain from longstanding exclusivity deals with the likes of Apple (AAPL) that set Google Search as the default option on the company's smartphones. Mehta could also force Google to sell off its Chrome browser, the most popular web browser in the world. That would put a dent in Google's all-important search business, a dangerous proposition for the company. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
