Federal Government Suing Google According to Reports

A number of news entities, including CNN are reporting the Trump Administration has launched an anti-trust case against Google.

The CNN report states the Justice Department alleges Google has “stifled competition” in order to maintain its position as a top online search and search advertising company.

Joining the Federal Government in the lawsuit are Arkansas, Georgia, Kentucky, Florida, Indiana, Louisiana, Mississippi, Montana, Missouri, Texas and South Carolina.

According to CNN, the focus of the lawsuit is a series of moves that Google undertook that allegedly harmed its competitors and prevented rivals from “gaining a meaningful audience.”

CNN reports the suit alleges that Google paid billions of dollars to companies such as Apple, LG, Samsung, and browser developers that include Mozilla and Opera to be their default search engine.

The government in the story also does not rule out the breakup of Google as a result of its actions.

“Nothing is off the table, says Jeffrey Rosen, deputy attorney general, reports CNN.

“We could lose the next wave of innovation … Americans may never get to see the next Google.”

The actions by the Federal Government follow a comprehensive review of the tech industry in which the government found a number of tech giants enjoy “monopoly power.”

CNN emphasizes the court case could hurt Google’s advertising business, which produced nearly $135 billion in revenues to account for approximately 84% of Google’s business.

The report also cites the government’s case against Microsoft back in 1998 when it was alleged that Microsoft broke the law by including its Internet Explorer browser with its Windows operating system to impede the growth of other browser products.

Eventually the government and Microsoft settled the case, and CNN notes that many point to this case a landmark ruling that eventually helped companies like Google prosper.

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