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Home / Business / The Department of Justice is reportedly preparing a cartel investigation by Google

The Department of Justice is reportedly preparing a cartel investigation by Google



Sundar Pichai, CEO of Google, enters the stage at the presentation of the new Google hardware on October 4, 2016 in San Francisco.

Beck Diefenbach | Reuters

The US Department of Justice is planning an antitrust investigation into Alphabet's Google subsidiary, the Wall Street Journal reported Friday. Efforts will impact web search and other parts of Google, the report said.

The report is in the discussion of politicians and the public about whether large technology companies should be dissolved. The Ministry of Justice initiated a serious antitrust case against Microsoft in 1

998, which resulted in several rules that the company had to follow for years.

Alphabet posted sales of $ 136.8 billion in 2018, 85% of which came from advertising. According to NetMarketShare, Google controls more than 70% of the search engine market.

Google has been subject to cartel pressure in the past.

In 2013, Google announced it would change some practices after agreeing with the US Federal Trade Commission. The FTC was concerned that some of Google's business practices might restrict competition.

In 2010, the company received a European Commission antitrust complaint regarding the ranking of search results and advertisements, which resulted in a $ 2.7 billion fine in 2017. according to the current annual report of Alphabet. In 2016, the EU complained about practices related to Google's Android operating system, leading to a charge of $ 5.1 billion in 2018.

In March, the European Union called on Google to pay around $ 1.7 billion for advertising.

Sen. Elizabeth Warren, who announced her presidential candidacy for 2020 in December, has urged smashing tech companies like Google. In a widely-read post published on Medium in March, Warren said she was interested in appointing regulators interested in reversing what they called "anti-competitive mergers," including Google's DoubleClick, Nest and Waze. "Current antitrust laws empower federal regulators to dissolve mergers that restrict competition," she wrote.

President Trump criticized Big Tech and blamed Google in its search results for political bias. In March, Trump tweeted the allegations that Google's YouTube and Twitter favored Democratic opponents against him and Republicans.

Google and the Department of Justice did not immediately respond to requests for comments.

Read the full story of the Wall Street Journal here.

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