Latest in Google Monopoly Case The US Department of Justice Calls for Multiple Decentralization Measures Including Sharing AI Training Data
The game “Monopoly,” originally named as such in English, signifies monopoly. In Monopoly, each player is given an equal amount of capital and moves around the board by rolling dice. Upon landing on a property, players can purchase it and build houses to collect rent. Ultimately, only one winner remains; the player holding the most land can drive their opponents to bankruptcy. This illustrates the terrifying nature of market monopolies: the winner takes all, while the losers are driven out of the game.
Understanding the true meaning of Monopoly as the harm caused by market monopolies clarifies why both the United States and the European Union have imposed heavy penalties on monopolistic firms in recent years, with the government stepping in to protect a fair competitive environment among businesses. Monopolies deprive other players of any survival space. From a macro perspective, monopolistic practices not only fail to benefit the overall ecosystem but also reduce the per capita GDP and overall development of the nation.
According to a Reuters report on October 8, the U.S. Department of Justice (DOJ) may request a judge to mandate that Google’s parent company, Alphabet, divest certain parts of its business. A ruling from August determined that Google holds an illegal monopoly with an 80% share of the online search advertising market.
The DOJ has proposed a potential measure that involves making Google’s search index and AI models available to its competitors for study, in order to curb Google’s exclusive monopoly over AI data. Google has been actively contesting the court’s ruling but appears to be struggling to find additional grounds for rebuttal.
Currently, Google is entangled in three lawsuits with the DOJ, including an ongoing case concerning Ad Tech. Further coverage will continue in the future.
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U.S. DOJ Proposes Remedies Against Google
Game Developers Accuse Google of Unfair Revenue Sharing and Payment Methods
Google’s Defense Focuses on Complete Denial
The DOJ has made multiple proposals requiring Google to remedy its existing business model. These include terminating the practice of setting Google Chrome as the default search engine on new phones or computers. Google pays up to $26.3 billion annually to manufacturers, including Apple, to maintain its dominance in search engines. This remedy would allow Americans to avoid being locked into using Google for their searches.
San Francisco Judge James Donato ordered that, based on the jury’s ruling, Google must allow more users to download apps and cannot restrict users from making payment transactions with third-party competitors.
Epic Games, the developer of Fortnite, sued Google in 2020, accusing it of monopolizing consumers’ freedom to download apps on the Android system and interfering with consumers’ payment methods. In December 2023, Epic persuaded a jury to rule against Google, leading to a court order prohibiting Google from controlling app distribution and payment settings, stating that Google hindered the development of game developers and squeezed their profits.
Judge Donato’s injunction includes a prohibition on Google from restricting app payment methods for three years and limits revenue sharing between the Google Play Store and applications.
Court rulings regarding both the Google advertising monopoly case and the Google Play Store monopoly case have been issued, with the DOJ even suggesting remedial measures to prevent Google from incurring exorbitant fines. Google is currently preparing to appeal, primarily arguing that its services are based on consumer benefit, thereby denying any monopolistic conduct.
Websites like Yelp, which focuses on food searches, strongly support the court’s ruling. Yelp has also filed a lawsuit against Google and seeks to distance itself from Google’s search engine. Users often search for food through Google before checking reviews on Yelp. For niche search websites, Google’s restrictions limit traffic and siphon off web users.
Echoing the earlier introduction, the prototype of the Monopoly game was invented by Elizabeth J. Magie Phillips as “The Landlord’s Game.” The game serves as a cautionary reminder to players about the potential future of poverty stemming from excessive greed for profits. In the business market, many capitalists spare no expense to monopolize all businesses.
Google is a search tool relied upon by many; when Google prioritizes commercial profit, it transcends the issue of stifling local businesses’ rankings or suppressing competitors, affecting users’ original intent of seeking genuine, useful information, rather than merely seeing search results propelled to the top due to payment. Excessive commercialization harms not just businesses but also the internet users who expect Google to bring convenience to their lives.
It is hoped that the Google monopoly case will prompt Google to make changes, ensuring that internet searches do not become a tool for a select few beneficiaries
Anti Trust
Anti-Monopoly
Fortnite
Google Monopoly Case
Judge James Donato
Anti-Monopoly Law
Further Reading
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