The Ministry of Justice launched its appeal hearing for Google on Monday, which means that the court will decide the next step for Google because it judged that the research giant is a monopoly.
The MJ filed the trial for the first time in 2020, and last year, a federal judge judged that Google had violated the antitrust law by spending billions to make its search engine defect on iPhones, Android devices and web navigators. According to court documents, Google paid for Apple $ 20 billion in 2022 to be the default Safari search engine.
The proposed remedies include the separation of chrome and Android via a spin-off or a sale, research data sharing with competitors and the end of research income sharing agreements with Apple to make Google the default search engine on iOS.
“If Google’s driving is not corrected, it will control a large part of the Internet for the next decade and not only in internet research, but in new technologies such as artificial intelligence,” said assistant prosecutor Gail Slater on Monday before opening arguments in the Google Search Remedies.
Meanwhile, Google does not plan to go down without fighting, and it plans to appeal. In a blog post, Lee-Anne Mulholland, vice-president of Google for regulatory affairs, qualified the remedy of “useless and harmful” doj.
Mulholland wrote that the Doj’s proposals would make people more difficult for people to use Google research, increase prices on mobile phones, because the manufacturers of devices are based on research distribution income, lead to “endanger your confidentiality and your security” by sharing sensitive research data with other companies, and “hamstring” technological with China.
As for the cure for dividing Chrome and Android, Mulholland wrote that this “would harm the companies based on them”, “undermine safety” and increase the costs of the devices.
Google’s plans to appeal, analysts said that a final decision could be delayed by several more years.
“In the end, Google combat this tooth and the proposed settlement nails. Do not expect modifications until all the dust regulations are heard,” wrote Dan Morgan, principal director of the trusted portfolio in Synovus, in a note to investors.
On April 17, judge Leonie Brinkema of the American district court of the Virginia Oriental District also judged that Google had violated the antitrust law by monopolizing the digital advertising industry. The Doj asked the court to make Google Google undressed, which is used to publish and sell announcements.
Break Chrome and Android
Google would experience a “big loss” if it were to separate its chrome -based activity, given all the data that the research giant collected from research and targeted advertising results in Chrome, said Dave Heger, main analyst at Edward Jones.
“I would be surprised that this is not forcing a separation of chrome, but I am wondering in a way the income sharing agreement and the default browser if there was a kind of concentration on this type of relationship,” Heger told Business Insider.
Similarly, Android generates income for Google in several ways, as via the Play Store and by leading users to other Google services such as Search, YouTube and Gmail.
“Overall, chrome disinvestment and perhaps Android would have a prejudicial impact on Google’s ability to direct traffic on desktop and mobile device, which has a negative impact on income / profits,” wrote Morgan.
Google’s research agreement with Apple
The end of the income sharing agreement with Apple could save billions of Dollars Google, although it means that it will no longer be the default search engine for iPhone users and would be a loss for Google if Apple made an agreement with another browser.
In addition, if fewer people use Google, this reduces the value of Google research because the company changes its algorithms according to the data it collects from the search results of users.
“It leads to a lot of traffic when you think about the number of people who are researching their phone,” said Heger. “It would certainly have an impact.”
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