October 20, 2020, 11:48 AM
wcb6092DoJ Finally Files Sweeping Antitrust Lawsuit Against Google
https://www.zerohedge.com/tech...wsuit-against-googleUpdate (1130ET): AG William Barr released a statement about the Google suit, saying "millions of Americans rely on the Internet and online platforms..." and that "competition in this industry is vitally important."
Update (1030ET): Deputy Attorney General Jeffrey Rosen led a brief phone briefing with reporters on Tuesday where he essentially confirmed all of the reporting from this morning's WSJ scoop.
Rosen added that the lawsuit accused Google of violating Sectin 2 of the Sherman Act, the same statute that was used during Bill Clinton's presidency to carry out a host of antitrust litigation, including the landmark case against Microsoft.
"For years there had been concerns about business practices leading to unprecedented concentration in our economy," Rosen began, adding that the anti-trust division has been looking at Google and its anti-trust practices for more than a year now. Rosen called Google a "gatekeeper of the Internet" and "one of the wealthiest companies on the planet", saying it has maintained its monopoly standing via "anticompetitive practices" that are necessary to "enable competition".
If the DoJ doesn't act, Rosen said, Americans could risk missing out on the next wave of companies. If that happens, Americans may never get to see "the next Google."
"We plan to continue our review of market-leading Internet tech platforms," he said.
Rosen added that AG Barr made the case "a priority" within the department. Rosen thanked the DoJ antitrust division and the DoJ's partners in each state capitol for all their hard work on the case.
Stocks have climbed since the open, after news about the Google lawsuit hammered US futures.
As we wait for the DoJ briefing on the lawsuit, it's worth noting that Sundar Pichai, CEO of Google owner Alphabet, will testify on Capitol Hill next week.
As for why Democratic states didn't sign on to the antitrust suit, CNBC's Ylan Mui reported - citing details in WSJ and NYT reports - that there was some resistance from staff attorneys, and ultiamtely Democratic states declined to sign on, along with many Republican states, all of which are now free to bring their own charges.
A guest who appeared on CNBC following Mui's report pointed out that one of the biggest differences between Google and Microsoft is that Google's products are mostly free (for end users) and are also tremendously well-liked.
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Update (0915ET): Reuters has some more details about Tuesday's Google lawsuit, which the DoJ has now confirmed.
GOOGLE CASE IS MOST SIGNIFICANT ANTITRUST ACTION IN DECADES
GOOGLE ABUSED ITS DOMINANT POSITION IN SEARCH MARKET, U.S. SAYS
GOOGLE ACCUSED BY U.S. OF ABUSING MARKET POWER IN LANDMARK CASE
US GOOGLE ANTITRUST CASE JOINED BY ELEVEN STATES
More official details are expected during a briefing set for Tuesday morning, but many of the key details have already appeared in press reports.
Republican Sen Josh Hawley accused Google of keeping power through "illegal means" and called the lawsuit "the most important antitrust case in a generation." Reuters also note that the federal lawsuit marks a rare moment of comity between the Trump Administration and progressive Democrats like Sen Elizabeth Warren, who has called for "swift, aggressive action."
Sen Ted Cruz took to CNBC's Squawk Box earlier to trash Google and its Big Tech peers for abusing their market position and censoring conservative voices.
More at link.