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Google and Apple face their greatest challenge yet
Tech giants like Google and Apple are facing increasing regulatory scrutiny, with the possibility of breakup looming on the horizon.
Tech titans
As governments around the world aim to curb the dominance of these tech behemoths, antitrust actions and investigations are intensifying.
In the United States, lawmakers have been ramping up efforts to rein in the power of big tech companies.
The Department of Justice and the Federal Trade Commission have launched investigations into alleged anti-competitive practices by Google and Apple, among others.
Increasing regulations
This heightened regulatory focus suggests potential seismic shifts in the industry’s landscape.
Internationally, similar sentiments are echoed as governments in Europe and elsewhere also take aim at tech giants’ market dominance.
With concerns over unfair competition and stifled innovation, calls for stricter regulations and even breakup of these companies are gaining traction.
Giant’s Break-up
Regulators are still weighing their options, and it’s uncertain whether they’ll decide on a break-up order for Apple.
They may opt for fines instead. Legal experts, referencing the 1998 case against Microsoft, suggest that prosecuting Apple could be more challenging this time around.
A Commission official in the European Union, speaking anonymously, noted that breaking up companies is not a common practice and is typically considered a last resort. It has never been done before.
Damien Geradin, a lawyer at Geradin Partners advising app developers in other cases against Apple, highlighted the complexity of breaking up Apple compared to Google due to its highly integrated system. For instance, forcing Apple to divest its App Store wouldn’t be practical.
He suggested that imposing behavioral remedies on Apple might be more effective, requiring the company to adhere to certain practices. On the other hand, with Google, a break-up order could focus on undoing acquisitions that bolster its core services.