According to the US Department of Justice, Alphabet, under whose wings Google belongs, has long abused its market dominance, pushing out smaller competitors. The US is thus going into a legal battle with the tech giant after more than 20 years.
The US federal government blames Alphabet and Google, respectively, for in violation of competition rules by illegally holding their dominant position in search and search advertising placement. Eleven U.S. states also joined the action.
“Until the court prohibits it, Google will continue its anti-competitive behavior that cripples the competitive environment, restricts consumer choice, and suppresses innovation,” the lawsuit reads. According to the federal government, Google accounts for nearly 90 percent of all general queries in U.S. internet search engines, and nearly 95 percent of queries raised from mobile devices.
The current lawsuit filed by the U.S. Department of Justice is the first of its kind since the government launched a lawsuit against another tech giant, Microsoft Corporation, in 1998. At the time, it was also suspected of committing anti-competitive practices. Microsoft didn’t have to split up after all. But Google faces an obligation to split into smaller firms, analysts say.
