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US Claims Google Pays More Than $10 Billion A Year To Maintain Its Search Dominance

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1 year ago

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WASHINGTON — The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation, the Department of Justice alleged Tuesday at the start of the largest antitrust trial in the United States in a quarter-century.

“This is a case about the future of the internet and whether Google’s search engine will ever face meaningful competition,” said Kenneth Dintzer, the main counsel for the Justice Department.

Over the next ten weeks, federal and state attorneys general will aim to show that Google rigged the market in its favor by making its search engine the default choice in various places and devices. A verdict from U.S. District Judge Amit Mehta is likely early next year. If he finds that theyviolated the law, a new trial will be held to determine what steps should be taken to rein in the Mountain View, California-based business.

Top officials from Google, Alphabet Inc. and other strong technology companies are slated to testify. Alphabet CEO Sundar Pichai, who succeeded co-founder Larry Page four years ago, is likely to be among them. Court filings also indicate that Eddy Cue, a senior Apple official, may be summoned to testify.

During the Trump administration, the Justice Department launched an antitrust action against Google, alleging that the firm leveraged its dominance in internet search to acquire an unfair advantage over competitors. Government lawyers claim that Google protects its brand through payola, paying billions of dollars per year to be the default search engine on the iPhone and web browsers such as Apple’s Safari and Mozilla’s Firefox.

“Google pays more than $10 billion per year for these privileged positions,” claimed Dintzer.

“Google’s contracts ensure that rivals cannot match the search quality ad monetization, especially on phones,” Dintzer explained. “This wheel has been turning for more than 12 years thanks to this feedback loop.” It always works in Google’s favor.”

According to Dintzer, the more queries Google performs, the more data it accumulates – data that can be used to optimize future searches and give them an even stronger advantage over its competitors. “User data is the oxygen for a search engine,” he explained. As a result of its market domination, “Google search and ad products are better than its rivals can hope to be.” That is why, he claims, the company spends so much for its search engine to be the default option on Apple and other companies’ products.

Dintzer said that Google “began weaponizing defaults” more than 15 years ago, citing an internal Google paper that referred to their settings as an “Achilles Heel” for competing search engines such as Yahoo and MSN.

He also claimed that Google coerced Apple into making its search engine the default on their iPhones in exchange for revenue-sharing payments. “This is not a negotiation,” Dintzer declared. “This is what Google is saying: Take it or leave it.” According to the lawsuit, Apple’s anticompetitive activities stopped it from establishing its search engine.

google

The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation.

Dintzer claimed that they erased documents to keep them out of court proceedings and attempted to conceal others under attorney-client privilege. Dintzer stated, “They destroyed documents for years.” “They turned off history, your honor, so they could rewrite it here.”

Google replies that, although controlling over 90% of the internet search market, it confronts a wide range of competition. Google claims its competitors span from search engines like Microsoft’s Bing to websites like Amazon and Yelp, where customers may post inquiries about what to buy or where to go. “There are lots of ways users access the web other than default search engines, and people use them all the time,” said attorney John Schmidtlein, a partner at Williams & Connolly who represents the company.

According to Google, continuous improvements to its search engine explain why people almost reflexively return to it, a habit that has long rendered “Googling” synonymous with searching things on the internet. Schmidtlein, for example, stated that the changes made their search superior to main rival Bing. “At every critical juncture,” he explained, “they were beaten in the market.”

The trial starts just a few weeks after the 25th anniversary of the company’s first investment — a $100,000 cheque issued by Sun Microsystems co-founder Andy Bechtolsheim that allowed Page and Sergey Brin to set up shop in a Silicon Valley garage.

Today, Alphabet, their corporate parent, is worth $1.7 trillion and employs 182,000 people. Most of its revenue comes from $224 billion in annual ad revenues flowing through a digital services network centered on a search engine that processes billions of daily requests.

google

The U.S. Google has used its dominance in the internet search industry to keep competitors out and stifle innovation.

The Justice Department’s antitrust complaint is similar to the one it brought against Microsoft in 1998. Regulators then accused Microsoft of compelling computer manufacturers who used its dominant Windows operating system to include Microsoft’s Internet Explorer — just as the internet became more popular. That bundling practice killed Netscape, the once-popular browser.

Several members of the Justice Department’s Google case team, including Dintzer, worked on the Microsoft probe as well.

Google could be hampered if the trial results in concessions that limit its influence. One possibility is that they will be obliged to stop paying Apple and other companies to be the default search engine on smartphones and desktops.

Alternatively, the legal struggle may cause the company to lose focus. That’s what happened after Microsoft’s antitrust battle with the Justice Department. Distracted by its distractions, the software behemoth struggled to adjust to the impact of internet searches and cell phones. Google used that diversion to propel itself from a startup to a formidable superpower.

SOURCE – (AP)

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Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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1 day ago

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2024-12-21

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Sonic the Hedgehog
Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

sonic the hedgehog 4

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

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2 days ago

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2024-12-20

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Amazon Strike Called By Teamsters Union
Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

Published

3 days ago

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2024-12-19

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Amazon

(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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