$GOOG 📱
🥇Google's productive loss! 🥇
Google just lost a lawsuit against it by the US Department of Justice. The Department of Justice sued Google for being nothing less than an "illegal monopoly." ⚠️ *(For paying Apple $20 billion a year! to make Google the default search engine on iPhone and Safari)
⏺And yet, Google's stock price closed in the green even though the indices fell. 🕯
Why? 👀
3️⃣ Reasons:
1) Although the Department of Justice proved that Google engages in monopolistic practices, there is not much that can be done to change Google's dominance in search. 🔎
⏺The Department of Justice can prevent Google from continuing to pay Apple $20 billion a year to make Google the default search engine and give users the option to choose another search engine 🖥 (e.g., Bing, Duckduckgo, ChatGPT search).
⏺But despite this, most users will still choose Google, because it provides the most comprehensive results, and also due to habit. Is there anyone who doesn't use Google? 🙂
This is similar to what happened in the European Union, where Apple and Android were forced to give users a browser choice. Can you guess the results? Over 90% of users still chose Google! 🙂
Google's search share will barely be negatively affected. Not only that, they will also save expenses of that same $20 billion a year (the payment to Apple), and that is a victory for Google. 🏆
2) As with all previous antitrust lawsuits, Google will appeal, and this entire process will take decades to resolve with no action ultimately taken. 🙂
3) Even if the US Department of Justice forces Google to divest its business (forces it to sell Android / Chrome, etc.), Google may still grow even without them! 📈
An identical case happened to Microsoft. Microsoft was forced by the US Department of Justice in 1999 to break up the company. 25 years later, $MSFT stock has risen 1,000% since the breakup! 🔼