One of the big issues on most lawmakers’ minds right now is the power that tech giants and social media companies have on our society. Among other things, rumors about potential antitrust lawsuits against Google (NASDAQ: GOOG) have been fermenting for quite some time. Other companies, such as Facebook and Amazon, have also faced similar regulatory scrutiny as well, with potential lawsuits on the horizon for them as well. However, Google’s particular case seems to have hit a bit of a snag, with some members of the Justice Department expressing concerns about the lawsuit in question.
There are many antitrust lawyers working to see whether or not Google has used its position to snuff out potential competitors. However, it appears that some lawyers have expressed concern that their case might be weaker than they would like. The Wall Street Journal went on to report that some staffers involved in the case have gone on to reveal some of their concerns, although the specific details of what part of the case may be weak weren’t revealed.
Attorney General William Barr is currently leading the case and is aiming to pursue an aggressive approach when it comes to potentially suing the tech giant. It will be his call when his team will announce a formal charge against the company.
“Things are moving along to my satisfaction in terms of the timing. I’m hoping to make a decision by the end of the summer,” said Barr in an interview last week when he was asked about how it’s going with Google. “While we continue to engage with ongoing investigations, our focus is firmly on providing free services that help people every day, lower costs for small businesses, and enable increased choice and competition,” commented a spokesperson from the tech giant.
The news also follows a separate lawsuit filed by Epic Games, a videogame developer that had its hit game “Fortnite” removed from both Apple and Google app stores simultaneously last week. At the same time, European Union regulators have already filed three separate lawsuits against Google already.
While tech giants have done quite well for themselves so far this year, Google’s performance hasn’t been as stellar as some other companies. Shares are up around 10% since the start of the year, which is relatively mediocre in comparison to many other stocks that have been on a winning streak so far this year. The biggest problem for Google going forward will be its regulatory scrutiny, which could pose a serious risk for the company in the future. Time will tell how things will unfold, but long-term investors should definitely be wary about the risks this possibility will hold.
Google Company Profile
Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google’s other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. – Warrior Trading News
