Good morning. Today, my colleague Cecilia Kang explains the next steps in the Google monopoly case. We're also covering Telegram, journalists in Hong Kong and burgers.—David Leonhardt
Awaiting a penalty
Google, a judge ruled earlier this month, is a monopolist. Now comes the hard part: How can its search be fixed to restore competition? Next week, the judge will hold his first hearing to consider the answer. This one could be messy. There's a long menu of options that Amit Mehta of the Federal District Court in D.C. could choose from. He could restrict Google's deals with companies like Apple. He could form separate companies for products like Google's Chrome browser and its Android operating system. Or he could come up with a completely new idea. And however he tries to curb Google's power could set a precedent for the rest of the tech industry, as the antitrust suit against Microsoft did two decades ago. The timing is tricky, too. Search is changing as corporations unveil artificial intelligence to answer more queries. In the end, Google says it will appeal anyway, which will set off another round of hearings. In today's newsletter, we'll explain the options that the judge has for punishing Google, and the potential benefits and drawbacks of each. What harmed competition?
The government isn't likely to show up with concrete proposals at the first hearing on remedies, as this process is called, next Friday. It's too early for that. Instead, the proceeding is a chance for Mehta to describe what he's looking for. The Justice Department wants to break Google up. But there are several less drastic ideas floating around, depending on which behaviors Mehta wants to curtail. His ruling could be a guide to these possible remedies, some of which he could impose in combination. Mehta called out a few things that, he said, ran afoul of the law.
Seeking fairness
Mehta isn't just looking at Google. He'll also consider how his orders could affect other companies, restore competition or even distort markets in new ways. For instance, if he makes Google sell Android, what happens if the software ends up in the hands of another Big Tech player like Microsoft or Meta? He'll have to weigh how his decisions will affect the future of technology. And he'll want to do so in a way that doesn't freak customers out. How will people accustomed to Google feel if it's harder to find their search engine — or if they have to pay to use it? My sources tell me it could take as little as three months or more than a year to know what will happen, given that Google will appeal. In 2000, a decision to break up Microsoft was reversed the following year. The lawsuits this time could continue until the late 2020s. Google, meanwhile, will start a whole new antitrust defense next month in another case brought by the Justice Department. This one is about something completely different — its alleged monopolization of the online ad market. Related: Google's antitrust case has opened the door to other lawsuits. Yelp sued Google yesterday, claiming that Google unfairly tilted search to favor its own local listings over Yelp's. More on tech
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jueves, 29 de agosto de 2024
The Morning: Google’s fate
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