Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Haha, Take it easy. Let us all WIN!
To win, the U.S. Department of Justice must prove that Google gained or maintained monopoly power through abusive conduct.
Alphabet Inc (NASDAQ: GOOGL) stocks jumped approximately 1.38% during Tuesday’s trading session to close the day trading at $1,551. Notably, GOOGL shares were 0.87% up during Wednesday’s premarket in regards to yesterday’s close. Investors in GOOGL stocks are in a state of dilemma as the Alphabet’s subsidiary Google faces an antitrust case with the United States government.
Apparently, the case is not a walk in the park as there are hard questions needed to be answered before the case is ruled out.
Google and Its Antitrust Case
To get the scope of the case, the United States antitrust law was put in place to look out for companies that violate their market monopoly against other small businesses and to cushion consumers against market monopoly issues.
However, the case filed on Tuesday against Google is rather disturbing since the main issue, Google search engine is offered to the market for free. In addition, it is not clear how Google attained its market monopoly, whether it misused its dependency or really consumers preferred its services making it a huge player in the market.
These hard questions put the department of justice in limbo as it pushes ahead with the hearings.
There are several complaints from small capped businesses that Google has in the past toppled them due to its monopoly. Hereby raising the question of unhealthy competition that disqualifies other startups. Torn in between, the case is expected to drag along the chambers for years as the court tries to search for the weightier side.
To win, the U.S. Department of Justice must prove that Google gained or maintained monopoly power through abusive conduct or something beyond competition on the merits.
Some market experts point out that Google will argue that the United States government overestimated its potential by defining its market in a small scope.
Shubha Ghosh, a law professor at Syracuse University, said the government alleges Google is blocking more consumer-friendly search engines, such as ones that do not collect user data to personalize ads, from gaining popularity. However, he indicated that the company will base its argument that its search engine was effective at generating results that consumers want.
During the pandemic, alphabet stocks have had mixed results whereby they were 15% year to date. In the past three months, GOOGL stocks had dropped approximately 0.31% and were up around 6.25% in the past one month.
The mixed volatility is expected to continue in the future, with different fundamentals affecting the company.
With the uncertainty period expected to be in years, Richard Smith, chairman and chief executive of a nonprofit called the Foundation for the Study of Cycles, said investors need to be able to calculate how much of their money they can risk in a downswing during this long process.