Stratechery United States v. Google
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Oct 21, 2020 The podcast dives into the U.S. Department of Justice's lawsuit against Google, scrutinizing alleged anti-competitive practices. It highlights Google's search engine dominance and the strategic maneuvers that bolster its market position. The discussion spans antitrust arguments and introduces concepts like 'aggregation theory.' Insights on the relationship between Google and Apple reveal complexities in their partnerships that reinforce monopolistic tendencies. The historical context of monopolies in America is also examined, stressing the need for updated legal frameworks to tackle corporate dominance.
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Delrahim's Antitrust Framework
- Makan Delrahim's antitrust framework emphasizes that monopolies themselves aren't illegal.
- However, a monopolist engaging in actions designed to stifle competition, even if their initial dominance was legitimate, can be illegal.
DOJ's Focus
- The DOJ's case against Google centers on their distribution practices, particularly the payments made to secure default search engine status.
- This strategy, they argue, blocks rivals from gaining necessary scale and recognition.
Google's Defense
- Google argues that they pay for promotion like any other business, securing prominent placement on devices and browsers.
- They emphasize the ease with which users can switch search engines, highlighting consumer choice.