Published: April 21, 2016
Alphabet is in everything. Since Google divided all of its companies under the gigantic umbrella company that is Alphabet, law makers have been scared that they will begin to take advantage of their dominance over markets. Inevitably, that fear has come to fruition. The European Union has officially begun to bring formal anti-trust litigation against Alphabet.
So what exactly did Alphabet do? Well, the EU claims that their dominance over the smart-phone market forces smaller producers to install Google applications as defaults on their phones in order to have access to other Google applications in the future. As well, they are accused of giving financial incentives to companies that installed Alphabet’s operating system, and also blocked companies that tried to manufacture phones with legal, spin-off operating systems. The European Commission, an organization that specializes in European anti-trust laws, found that Alphabet’s tactics were specifically implemented in order to preserve and/or establish an unfair dominance over the market for search engines and advertisements on smart-phones.
The main problem that arises from this situation is that Google is blocking fair competition by other internet search companies. Google search accounts for 90 percent of the Market Share of search engine use in member states of the EU, according to the European Commission. Also, the cost of switching operating systems is extremely high, considering that all purchased apps would have to be repurchased.
A major factor in this case is also that there is no statute of limitation. The European Commission has as much time as they would like to investigate and build a case. This could mean long term effects of Alphabet.
Contact the writer: firstname.lastname@example.org