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Case against Google, cheap electric cars and untouchable WeChat
Topic – what threatens Google in the US antitrust investigation
This week, the US Department of Justice sued Google for abusing the monopoly in the search market. Next in line is Facebook. The lawsuit against Google, which was expected for more than a year, immediately became the topic of heated discussions and divided politicians and IT people into two camps: some believe that the position of the Ministry of Justice is weak, and the lawsuit is a purely political phenomenon, others talk about the terrible consequences of market monopolization and the need to take action. We tried to figure out what guides both of them, as well as what this case, which risks becoming the main process of the decade, can threaten you and me.
What Google is being accused of
This week the Decade Trial officially kicked off in the US, with the Department of Justice filing its lawsuit against Google for abuse of its monopoly position in the search and online advertising market after a year of deliberations. The case has been in preparation for more than a year, the lawsuit, in addition to the ministry, was filed by prosecutors from 11 states, Deputy Attorney General Jeff Rosen told reporters. Google is accused of creating an illegal monopoly in the US Internet search market, 88% of which is controlled by the service, and advertising in search services.
What Google is accused of:
- In a multi-billion dollar deal with Apple to preinstall Google services on iPhones and iPads. This is one of the main charges. Google agreed with Apple that on all its devices around the world, Google will be the default search engine. For this, the company pays from $ 8 to 12 billion a year, and Apple itself records payments from Google in the segment of its revenue from the services segment, the growth of which boasts to investors. Apple CEO Tim Cook and Google CEO Sundar Pichai met in 2018 to discuss the deal. After that, a certain Apple executive wrote to his colleague from Google that “we work as if we are one company. ”
- In that the company enters into restrictive agreements with manufacturers of devices based on the Android mobile OS developed by Google. Moreover, it was often impossible to remove Google services from a smartphone or computer.
- Google controls through exclusive rights about 90% of all search queries in the US and receives $ 40 billion a year from advertisers. At the same time, the company gave an advantage in advertising to its products and pushed competitors, the lawsuit says.
Google itself released a lengthy rebuttal on its blog. The company’s vice president, Kent Walker, wrote that he believes the lawsuit is deeply flawed. “People use Google because they want to, not because they have to or can’t find alternatives. This lawsuit will not help consumers in any way. On the contrary, it will artificially support lower quality search alternatives, increase phone prices and make it harder for people to access the search services they want to use,” he said.
Changing the default settings is easy, according to Google, and people use many specialized services when it suits them. Besides, the company isn’t doing anything wrong: Google pays for a digital version of supermarket shelf space that food manufacturers pay for. Google’s competitors can do the same. And Apple chose Google because its product is the best.
What it threatens
The Wall Street Journal calls the lawsuit the largest antitrust case in the US in decades. The case is compared to two historic antitrust trials – 1974 years against telephone AT&T, which resulted in the division of the company into 9 regional operators, and 1998 against Microsoft, after which Bill Gates’ company miraculously avoided a similar division.
The lawsuit against Google does not specify the sanctions that the plaintiffs will demand to impose on the company, but the US Department of Justice does not rule out any options and even hints at a forced separation of the company. This option is also allowed by lawyers.
The Google business split requirement is a real possibility. Such a decision (in relation not only to Google, but also to Facebook, Amazon, and Apple) was called acceptable in a report published in early October following an investigation by the Congressional Antitrust Committee. Politico reported last week that the US Department of Justice is considering selling the Chrome browser and spinning off Google’s advertising services as one option.
But the shareholders of Google’s parent company, Alphabet, clearly do not feel much threat from the lawsuit, for the week the company’s shares not only did not fall in price, but also rose in price. The market has long considered the prospect of filing a lawsuit, the proceedings will take years, and the plaintiffs have not yet demanded the most radical measures, such as the forced division of the company, analysts told Reuters. Alphabet now has $120 billion in cash on its accounts – this will allow the company to pay any, even the largest fines, without any problems.
Who is next in line
The lawsuit against Google is only the first sign: the authorities in the US and the EU are investigating and preparing antitrust charges against all major tech companies:
- The US Federal Trade Commission (FTC) is conducting its antitrust investigation on the tech market. In the next few weeks, she will file a lawsuit against Facebook. The focus is on deals to buy Instagram and WhatsApp, which the FTC has been studying for over a year.
- The EU is also conducting its own antitrust investigation: the European Commission launched two parallel cases against Apple due to commissions in the App Store and Apple Pay rules. The first was initiated by Spotify and Rakuten and involves a 30% commission on in-app sales. The second is due to the fact that you can pay on the company’s devices only through your own payment service.
- Another investigation that the European Commission may soon launch is against Amazon. It will affect the relationship of an online retailer with its sellers.
Controversy around the lawsuit
The main claim in the Justice Department investigation against Google is political motivation. Democrats and Republicans are in the most bitter confrontation on all but one issue – the need to punish tech companies, writes The New York Times tech newsletter writer Shira Ovid in the column “Why Washington hates big tech.”
Some critics believe that the cases against Google and others are the result of Donald Trump’s personal war against tech companies that do not support the Republicans and actively fight against the incumbent himself. Others are reminiscent of the Democrats’ resentment on Facebook and other social media platforms that were instrumental in Trump’s 2016 election victory.
As a result, tech companies are trapped. “This is the most bipartisan initiative I’ve come across in five and a half years in Congress,” Republican Congressman Ken Buck said during a summer hearing that questioned the CEOs of Facebook, Google, Amazon and Apple.
On the one hand, the Republican Trump is actively making statements, unusual for his party, about tougher regulation of the tech business and social networks. He constantly accuses them of political censorship due to the removal of their posts, as well as his decree, which will allow regulation of social networks and deprive them of protection from allegations of defamation – because of which Mark Zuckerberg, Jack Dorsey and Sundar Pichai will have to testify before the Senate Commerce Committee on October 28.
On the other hand, the Democrats in Congress plan to continue their investigation against technomonopolies, which may eventually lead to a division of companies – but whether they will be able to complete the deal depends on whether the Democrats get the majority in the Senate, which so far holds the Republican Party. 9Are the claims justified? “These are companies that occupy a dominant position in the market, through which they buy emerging competitors so that their margins are not eroded,” explains Igor Danilenko, managing director of Fosun Eurasia Capital. Companies with a capitalization of more than $1 trillion are precisely the companies that have managed to build global monopolies and are now almost impossible to move, he says.
Facebook almost missed the mobile revolution, had to catch up – and for this he bought Instagram; now, until the next revolution occurs, which Facebook may miss, the situation will not change, he gives an example. The same applies to, for example, Amazon: the larger it becomes, the more difficult it is to move it, because its costs are constantly decreasing, and due to this it simply eats up other players: “Even now, when the economy is falling, they still take away market shares due to economies of scale, due to the fact that they have such a strong competitive position.”
The US has its own cultural conflict with monopolies, including those now built by tech companies. NYU Stern School of Business professor Scott Galloway, author of The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google, author of The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google, explains that the cult of democracy thrives in the United States, while all tech companies — which are also part of society — are run by unelected people whose work is largely unregulated. “In this sense, we can say that the current case is not antitrust, but necessary to bring the tech business to more democratic governance. And the separation should help reduce the concentration of power in one hand, ”says Grigory Bakunov, director of technology distribution at Yandex.
It is difficult to say how justified the position of the Ministry of Justice in the case against Google is, Vadim Novikov, a senior researcher at the RANEPA and a specialist in antimonopoly regulation, believes. Google services are indeed present on a huge number of devices, but the question is whether this is due to the company’s abuse or the competitiveness of its product and prices, Novikov explains. If a monopolist is clearly abusing prices, on the contrary, it helps competitors grow, which have the opportunity to set prices lower, he says.
There is a theory of competitive markets in economics, which suggests that a market can be competitive even if it has only one player, says Novikov. The main thing here is the theoretical possibility of entry. “If a company knows that in response to any attempt to abuse a monopoly, a competitor can immediately appear and begin to actively poach users, it is forced to behave as if it really has competitors. And here the main question is whether Google’s analogues have the opportunity to be its hypothetical competitor, ”explains the economist.
What this means for users
The Google case is indeed similar to the Microsoft case of the early 2000s, says Yandex’s Grigory Bakunov. At that time, Bill Gates’ company had a monopoly in the browser market, but antimonopoly officers were obliged to give the user a choice window between Internet Explorer and other browsers. Over the next four years, this led to a total redistribution of the entire browser market, as a result of which Google won with its Chrome, he notes.
If now Google has competitors in the search market, the user will win, but not immediately, Bakunov believes. “Any competition first leads to a deterioration in quality: new services always work worse than global players. But then, once they have the money for that quality, and once they have access to the consumer, the quality will go up.”
But a simple division of Google’s business into parts may not bring the radical results that Washington is counting on, the expert continues. If, for example, Chrome is separated from search, this will only lead to Chrome paying Google to promote its own service in the search bar, both companies will pay more taxes – but nothing will change for users. The same will happen if Instagram is separated from Facebook, he believes.
ELECTRIC CARS
In four years, electric cars will cost as much as conventional cars
By 2024, electric cars will cost the manufacturer no more than conventional cars with internal combustion engines – at least this is what UBS predicted. The main question is how quickly and how much cheaper batteries are the main cost item in production. Bank analysts said automakers that are trying to hold back sales of traditional cars risk falling behind Tesla and Volkswagen. The latter, as the world’s largest car manufacturer by sales, has already pledged to invest 33 billion euros in the development of electric vehicles. “There are not many reasons left to buy a car with an internal combustion engine after 2025,” said Tim Bush, an analyst at UBS.
USA VS CHINA
California judge continues to block Trump’s WeChat executive order
Although Donald Trump signed an executive order back in August stating that WeChat, like TikTok, is a national security threat, the Chinese messaging service is still operating in the US. On Sept. 20, when it was supposed to be removed from app stores, a San Francisco court blocked the order, an interim measure in a class-action lawsuit filed by WeChat users against the Trump administration. And this Friday, the court refused to review its decision. The DOJ was never able to convince the judge that the app was indeed a threat to US national security. The ministry appealed this decision to the Court of Appeal, and now the case will obviously drag on. good news for 19million users who use WeChat every day in the US: the big question is what will happen to business after the presidential election.
READ LATER
- 21st Century Art: MIT Technology Review discusses how to make a chatbot that is neither racist nor sexist
- How the project of Donald Trump and Foxconn ended: the latter was supposed to build a huge high-tech production in Wisconsin for tax breaks, but three years later, instead of a factory, there are just empty walls, and it seems that there will no longer be any high technology there
- FastCompany lists 25 turning points that have changed technology over the past 25 years. In addition to obvious facts like the presentation of the first iPhone, there are also forgotten ones, like the moment when AT&T stopped charging hourly for Internet access
description, content, interesting facts and much more about the film
Film The Untouchables
1987
1 hour 54 min.
16+
USA
Thrillers
Drama
Crime
РУС ENG
Expand trailer
Trailer
1987 9000 5
1 hour 54 minutes
16+
USA
Thriller
Drama
Crime
РУС ENG
Rating
Evie
Kevin Costner
Sean Connery
Charles Martin Smith
Andy Garcia
Robert De Niro
Richard Bradford
Jack Kehoe
Brad Sullivan
Billy Drago
America is diligently creating its mythology. A significant contribution to the treasury of legends based on real events was made by director Brian De Palma with his crime drama The Untouchables, which we offer to watch. And already, in fact, it doesn’t matter how reliable the story is told and how much the colors are exaggerated – for many moviegoers this tape, which has become a remake of the television series 1959-1963 years old, has gained cult status: here is a very young, but already so promising Kevin Costner, and magnificent Robert De Niro, Andy Garcia and Sean Connery (by the way, an Oscar for supporting role).
Chicago. 1930. Prohibition. The most profitable business is alcohol. To deal with it, the self-confident mafia Capone bought with giblets the entire top of the city administration. It would seem that he has everything under control, money is pouring in, and the dissatisfied are sent to feed the fish. But the irreconcilable fighter against evil, FBI agent Eliot Ness, is not satisfied with this state of affairs. And he is recruiting a team of brave. Incorruptible. Untouchables.
We recommend watching the dramatic thriller The Untouchables online.
Evie rating
Outstanding actors
The life and adventures of Mishka Yaponchik
Swing
Boomer: The Second Movie
Gangster Petersburg
Fried chicken
Racketeer
Fools Die on Fridays
Killing Force
Outdoor Surveillance
Promised Heaven
Resort Fog
Invincible
Racketeer 2
Councilor of State
Sisters
Trap (2013)
Great
High security parents
District center
Mystery of the missing village
Matchmakers 7
Call sign “Cranes” 90 005
Superagents
Brian
De Palma
Kevin
Costner
Sean
Connery
Charles
900 04 Martin Smith
Andy
Garcia
Robert
De Niro
Richard
Bradford
Jack
Kehoe
Brad
Sullivan
Billy
Drago
Golden Globe 1988
Wins: Best Supporting Actor
Nominations: Best Soundtrack
Cesar · 1988
Nominations: Best Foreign Language Film
Trailer (English)
2 min.
Evie’s Choice
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Movies with subtitles
Crime thrillers
Edmond Vidal is not an easy person. Growing up in a Roma refugee camp, from childhood he absorbed all the values of his culture: honesty, pride in himself and his nation, love for family and friends, loyalty and devotion. Nicknamed Momon, he ends up in jail for stealing cherries. But even behind bars, the gypsies find themselves in the company of a friend – Serge.
Many years have passed, Vidal is not the same as before. Now, dishonest life and shedding other people’s blood in vain is not in his taste. However, he is still the same loyal and devoted idealist to his loved ones. True, with a completely different life. A respected person, an honest businessman and a decent family man.
Broner, the new police commissioner, apprehends Serge, who has been successfully on the run for the previous 12 years. The policeman is trying to break the old gypsy, forcing him to cooperate with the investigation. However, he rests and does not seem to be very frightened.
When a servant of law and order comes to Edmond, the idea is clearly fixed in the man that whatever their friend does there, the community should help him. Because it’s so right.
In the course of the film, the hero will be tempted to return to the old path, to become the leader of the mafia. After all, once upon a time, in the 70s, he, together with Serge, organized the most famous group of robbers. The most famous gang, at that time in France, robbed banks cleanly, but because of the arrest of its members, it fell apart and did not gather again.
Gypsies led by Vidal manage to get a friend out of prison, but this leads to grave consequences: the murder of a friend’s family, the extradition of the man himself to the police. Eliminating them, he more and more often recalls the events of a past life. Realizing that Serge has been a traitor all his life, he gives his friend a pistol with one cartridge, giving him a chance to die like a man. As he leaves, he hears a shot.
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