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The accusations, fines - and lawsuits on the way: The lawsuit against Google changes the rules of the game
The U.S. Department of Justice has filed an indictment against the technology giant, claiming it is acting as a monopoly and destroying competition against it.
Google rejects the allegations, but the proceedings, which may take many years, could end in a conviction and a dramatic structural change, and it seems that this is only the first round.
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United States
Mikey Levy
Friday, October 23, 2020, 8:27 p.m.
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In the video: Apple, Google, Amazon and Facebook were questioned at the US Congress about harming competition (Photo: Reuters, Editing: Nir Chen)
"If you do not pay for the product, you are probably the product" - this is often said when it comes to the technology giants that provide users with free services, but in return receive the most personal information about users.
This is actually the business model of Facebook, Google and almost every other entity that provides users with free services and is not a philanthropist.
In recent years, efforts have been made to protect surfers and consumers from the power that these companies have accumulated, and technology giants Google, Facebook, Amazon and Apple have even been invited to testify in this regard at the US Congress.
In this regard, despite the polarization in American politics, there is a wall-to-wall agreement that the power of these companies poses a danger.
This week, the United States Department of Justice filed a federal indictment against Google for violating antitrust law and blocking competition, signed by 11 states.
In the lawsuit, Google is accused of destroying competition.
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The last time the US administration acted in this way against a technology company was in 2001, when Microsoft was accused of becoming a monopoly and maintaining its status illegally.
Now, almost two decades later, the US administration is taking a similar move against Google.
For Microsoft, it was a turning point that divided the company into two divisions: one manufacturing operating system, and a separate software manufacturing company.
It is possible that if the US court convicts Google, it too may undergo a structural change.
What are the allegations against Google?
The U.S. government and 11 states across the United States have accused the search giant of violating antitrust law and blocking competition, following investigations into the matter in recent years.
Google rejected the allegations against her, saying that "the lawsuit filed by the Ministry of Justice is completely flawed. People use Google because it is their choice - not because they are obligated to do so or there are no alternatives."
In parallel with the federal indictment, Google may find itself later in a larger and more complicated legal battle: It is estimated that in the coming months the US administration is expected to file further lawsuits against it - one concerning Google's predatory control of digital advertising, and a general one. Email, Search, Android devices, and Chrome browser.
Is this the first time lawsuits have been filed against Google?
No.
In 2017, Google was fined $ 2.4 billion by the European Commission, claiming that it gives preference to the Google Shopping service when searching for products in the search engine.
A year later, in 2018, Google was fined $ 4.3 billion, this time for the Android operating system and the products it promotes.
In 2019, Google was fined once again, this time on the grounds that Google was abusing the AdSense advertising service.
Google CEO Sundar Pichai at World Economic Forum in Davos, Switzerland, January (Photo: Reuters)
Will Google disband?
It seems that the Trump administration is determined to register the dissolution of Google in their name, even though it is a long process, which could take many more years.
A report released by the US administration a few weeks ago also stated that the Amazon and Google companies should be disbanded.
In light of the extensive evidence base accumulated in recent years, which includes, among other things, the testimonies of employees and former senior executives in the search giant, it can be estimated that the chances that Google will actually have to undergo a change are high.
Will it affect consumers, and how?
It's hard to know, but two American giants have undergone a change following similar procedures - Microsoft, and the communications company Bell, which has created a number of companies that have been named Baby Bell, such as AT&T.
In both of these cases, the moves have benefited consumers, providing opportunities for new companies in the field to develop new and better products.
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