Google's Search Dominance
In 2024, a series of high-profile U.S. antitrust cases against leading technology companies, notably Google and Meta Platforms, are poised to reach pivotal conclusions. These cases, which have drawn significant attention from Silicon Valley and its critics, are likely to shape the legacy of the Biden administration's regulatory approach.
- A key case involves Google, a subsidiary of Alphabet Inc. Initiated in 2020, this case challenges Google's dominance in internet search. The U.S. Justice Department alleges that Google has unlawfully monopolized search engine technology, largely through agreements that default many devices to Google's search engine.
- This nonjury trial concluded in 2023, and a verdict is anticipated by late 2024. Should the court rule against Google, it could lead to a separate proceeding under U.S. antitrust laws to determine remedies for restoring competition in the search marketplace, potentially affecting Google's business operations.
Additionally, Google faces a trial in early 2024 regarding its alleged monopoly in the online advertising technology market. This case, brought by the Justice Department and state attorneys general, focuses on Google's significant role in brokering internet ads. It also scrutinizes Google's past acquisitions, such as the purchase of DoubleClick in 2008, with the Justice Department seeking to reverse these acquisitions to mitigate Google's market control.
Instagram, WhatsApp And Facebook
On another front, Meta Platforms (formerly known as Facebook) is embroiled in a significant antitrust case with the Federal Trade Commission (FTC). Filed during the final weeks of the Trump administration in 2020, the FTC alleges that Meta's acquisitions of WhatsApp and Instagram were anti-competitive, aimed at stifling potential rivals.
- This case has moved slowly, with the FTC being allowed to begin deposing witnesses after an initial dismissal was overturned.
- The progression of this case into 2024 will be closely watched, as it could redefine the FTC's approach under Chair Lina Khan, known for her stance on aggressive antitrust enforcement and potentially breaking up major tech companies.
These antitrust cases against Google and Meta are not merely about the specifics of monopolistic practices; they represent a broader struggle over the application and interpretation of antitrust laws in the technology sector. The outcomes will be crucial for understanding the future direction of antitrust policy in the U.S. and could have profound implications for the structure and operation of major tech companies. The decisions reached in these cases will likely influence regulatory strategies and enforcement actions for years to come, marking 2024 as a potentially landmark year in U.S. antitrust history.
Please note that Benchmark does not produce investment advice in any form. Our articles are not research reports and are not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.