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Lehtonen highlights antitrust implications of U.S. ruling on Google’s market position

Thursday 8th 2024 on 17:23 in  
Finland

A recent ruling by a U.S. federal judge regarding Google’s dominant position in the search engine market is a significant case, according to Kristo Lehtonen, head of Sitra’s Fair Data Economy initiative. In an interview with Yle Radio Finland, Lehtonen suggested that the ruling could even lead to a breakup of the company.

He compared Google’s situation to the antitrust litigation faced by Microsoft in the 1990s and early 2000s, which lasted over a decade. Microsoft was accused of abusing its dominant market position. “We are looking at years of legal battles ahead,” Lehtonen stated.

Lehtonen noted that Google’s monopoly in the search engine market has resulted in poorer products and higher prices for consumers, additionally weakening market competition. He criticized the ineffectiveness of fines imposed for market abuse under antitrust laws, highlighting that Google has faced over eight billion euros in fines in the EU over the past eight years. He emphasized that, despite their size, these penalties are merely rounding errors for digital giants.

According to Lehtonen, new regulations are necessary, as antitrust fines are often retrospective, and legal proceedings can take years. He pointed to the EU’s recent Digital Markets Act (DMA) as a new regulatory framework that major tech companies must comply with, aimed at ensuring fair competition in digital services while protecting consumer choice.

Furthermore, Lehtonen referenced a recent Financial Times article alleging secret collaboration between tech giants Meta and Google, where they reportedly worked together to target advertisements for Instagram at underage users on YouTube. He noted that such practices violate Google’s own rules against targeting ads to individuals under 18, emphasizing the critical importance of younger demographics in securing profits and data for companies like Meta. The exact scale of this case remains uncertain.

Source 
(via yle.fi)