Tech giants at great risk

This could lead to the breakup of names like Apple and Google. According to Reuters on March 24, the number of antitrust investigations is increasing in many countries after the European Union (EU) and the US took action.

Specifically, technology corporations are accused of building impenetrable ecosystems around their products, making it difficult for customers to switch to competing services.

The US Justice Department warned Apple on March 20 that it would not rule out breaking up the company in a move to restore competition. The department joined 15 states in suing the iPhone maker for monopolizing the smartphone market, hindering rivals and inflating prices.

An Apple store in New York City, USA Photo: REUTERS

In Europe, Apple, Meta Platforms and Alphabet (Google’s parent company) could be investigated for possible violations of the Digital Markets Act (DMA). If found guilty, the companies could face heavy fines or even be broken up in the case of repeat offenders.

Last year, EU Competition Commissioner Margrethe Vestager accused Google of anti-competitive practices in its monetized advertising technology business and could be forced to divest.

The only solution to avoid conflicts of interest, the official said, would be to require Google to sell some of its assets, which would prevent Google from favoring its online digital advertising technology services over those of its rivals. Vestager is expected to make a final decision by the end of the year.

Google said it disagreed with the EU's allegations. Apple, meanwhile, believes the US lawsuit is factually and legally wrong and said it will vigorously appeal. In the US, no company has been broken up by a regulator since AT&T 40 years ago.

Source: https://nld.com.vn/dai-gia-cong-nghe-gap-nguy-co-lon-196240324212943742.htm