While it’s hasty to predict a downfall of massive technology companies, a surge in rigid regulatory examinations can’t be ignored. One such example is Alphabet, Google’s parent company, which the US Department of Justice is currently contemplating dismantling. Court proceedings in August suggested that Google had violated antitrust laws, identifying the tech giant as a dominant de facto monopoly.
The Department of Justice’s lawsuit against Google could be a game changer in U.S. business history. Still, this legal battle would likely face numerous appeals before a final verdict. It’s crucial to mention a similar incident in 2000 when a court ordered Microsoft’s breakup, only to have the ruling later reversed on appeal.
In the past ten years, the European Union has slapped Google with a staggering €8.25 billion fine over alleged violations of antitrust law, a decision that sometimes gets overturned on appeal, and some suits remain unresolved. The reasons behind these antitrust legal battles align with accusations that Google misused its authoritative market role to unjustly impede other competitors.
If a court rules that Google has indeed become a monopoly, a breakup may ensue. Regardless of Google’s $2 billion market value, these laws frequently applied to less substantial companies will not spare them.
Economies suffer under monopolies which thwart competition and hinder innovation, negatively impacting consumers and smaller businesses. The ongoing legal battles against Google are not seen as being politically driven. However, governments are seemingly beginning to realise big tech companies’ influence on political procedures, with Elon Musk’s management of X being a glaring example.
If the current trend continues to rein in super tech companies, Ireland could face significant ripple effects. Google, like other potential targets, contributes considerably to employment and taxes in Ireland. This reliance on a handful of major US companies presents another vulnerability for Ireland’s public budget.