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Google attacked for abuse of dominant position by American justice

2020-10-20T14:19:02.223Z


It is the largest antitrust proceeding in the United States since the one against Microsoft in 1998.From our correspondent in Washington The Department of Justice, as has been anticipated for months, is formally accusing Google of abuse of dominance in federal court in Washington. Civil proceedings can take months. If federal prosecutors win, the digital giant could be forced to change its business model. Read also: US authorities are considering separating Chrome from Google Restrict innovat


From our correspondent in Washington

The Department of Justice, as has been anticipated for months, is formally accusing Google of abuse of dominance in federal court in Washington.

Civil proceedings can take months.

If federal prosecutors win, the digital giant could be forced to change its business model.

Read also: US authorities are considering separating Chrome from Google

Restrict innovation

From this domination, Google has built an extraordinary ecosystem in which it controls the tools that also allow advertisers to get their messages across.

Google, whose main revenues are derived from internet advertising, is accused of using its dominant position to unfairly influence the prices of advertising and reduce the choices offered to consumers.



These latter points are essential in US competition law.

The "antitrust" services do not have the mission to control a company which becomes too rich or too powerful.

Their role is not to rescue the unfortunate competitors of the leaders of an industry.

They must, however, ensure that a company respects the laws of fair competition, does not block innovation to preserve its rents, does not drive up prices and does not ultimately reduce consumer choices.

Read also: South Korea opened an antitrust investigation on Google

The fact that Google's services are innovative and free for consumers is a key argument in the defense of the Californian giant.

Its Android operating system is widely offered to smartphone manufacturers which has clearly served competition and innovation.

In exchange, however, Google obtains advantageous conditions which perpetuate its domination.

Sitting on 120 billion dollars of cash, Google has the means to defend itself in a long procedure and to appeal any unfavorable judgments.

At this stage of the proceedings, prosecutors do not offer specific remedies for the abuses they expose.

It is in a possible second phase of the civil trial that the question of structural changes to be made to the Google model will be debated.

Source: lefigaro

All news articles on 2020-10-20

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