Antitrust ruling against Google was the right call
Competition is at the heart of American capitalism.
Free and fair competition in the marketplace of goods and ideas has made America into an economic powerhouse and has ensured its dominant place in the global economy.
Free and fair competition has led to growth in goods and service available. It has led to improvements in the quality of life of workers and investors. It keeps open the door to upward socioeconomic mobility with the dream that someone willing to work harder and who has a better product to bring to market can find success.
The system works, provided it is actually free and fair competition.
In the Gilded Age of the late 19th century, real wages of workers rose 40% over the course of 30 years, but over the same time, the Robber Baron Industrialists amassed and consolidated financial and political power. They were not hesitant to use that power and economic clout to prevent competition and amass even more wealth and power.
It took reformers to break the monopolies with the Sherman Anti-Trust act passed in July 1890 and other laws and regulations which sought to reset and restore American capitalism to encourage free and fair competition.
A recent ruling by the US Department of Justice against Google continues that crusade toward a free and fair marketplace.
The Justice Department and several dozen state attorneys general won a sweeping victory against Google on August 5 as a federal judge ruled that the search giant illegally monopolized the online search and advertising markets over the past decade, securing up to 90% of the search engine market through partnerships with companies such as Apple, Samsung, and Verizon. The lawsuit has been years in the making.
“For years, Google has exerted its dominance, profiting off of the hard work and tremendous investments of publishers, while journalism struggles to survive – all during a time when people need reliable news and information more than ever. This landmark decision finally recognizes that this is unacceptable and unlawful, that Google must be held accountable, and competition must be restored to the marketplace,” said News/Media Alliance President & CEO, Danielle Coffey in a press statement about the ruling.
Coffey cited Google’s dominance in the marketplace, including member news publisher accounts of anticompetitive practices. “Google’s take from publishers is up to 70 percent of every advertising dollar received. This has a significant impact on what news and magazine publishers receive for their content,” he stated.
“This victory against Google is a historic win for the American people,” said Attorney General Merrick Garland in a statement about the ruling. “No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”
For America to remain the land of opportunity, courts must be willing to stand up to monopolies and prevent them from putting a stranglehold on the free market.
