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Google To Face Antitrust Investigation From US Justice Department

Alphabet’s subsidiary, Google is another in the list of big tech companies to come under the scanner of the US Justice Department. The Department is all set to slap an anti-trust probe against the company as per reports by the Wall Street Journal.

This is not the first time that such a move was initiated by a regulatory body against the company. The European Commission had in the year 2010, moved an antitrust complaint against the tech giant and slapped a $2.7 billion fine in 2017 in the context of search results ranking for shopping and ads.  Google’s practices with regard to its Android operating system had come under the EC purview resulting in a fine of $5.1 billion in 2018. Another monitoring action was taken in March by the European Union against Google by slapping a fine of $1.7 billion for its advertising practices. This is of great significance in view of advertising being the major source of revenue, about 85% for Alphabet and Google controlling about 70% plus of the search engine segment.

In recent times, Google has been facing a lot of political flak in the US with President Trump condemning the company for its search results bias. He was of the opinion that Google’s Twitter and YouTube were more inclined towards the Democrats rather than his Republicans.

Sen. Elizabeth Warren, the 2020 Presidential candidate was all for having a regulatory watch over big tech companies like Google and advocated breaking up mergers undertaken by them which led to elimination of competition in the market. She explained that the antitrust laws in force at present supported the splitting up of such mergers.

Google had modified some of its practices after facing antitrust pressure from the U.S. Federal Trade Commission in 2013 with regard to some of its business systems that curbed competition.

However, no comments were forthcoming from the Justice Department and Google in this context.

Gilbert Heist
Gilbert Heist Author
EDITOR IN CHIEF At ZMR Industry Analysis

Gilbert holds the Master’s Degree in Business Administrations. A robust understanding of the business world is the key element that made him a successful business person. He is actively involved in the business sector from over 12 years. Gilbert serves as a rich source of knowledge and energy to all other team members. He has developed a unique communication technique, which has helped him conduct many carrier guidance and entrepreneurship guidance programs globally.

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