The Digital Economy

Steve Salop explores the basis for warranting strong remedies in the Google Search case and the set of remedies Judge Amit Mehta might consider for restoring competition in the search market by jump-starting the competitive process.

On September 10, the highest judicial authority in the EU, the Court of Justice, will rule on Google Shopping, closing a case opened 15 years ago and instrumental in changing the narrative on Big Tech. Christian Bergqvist summarizes the history of Google Shopping and discusses its possible outcomes.

Stacey Dogan writes that antitrust regulators in the United States and Europe are right to investigate Big Tech-AI partnerships. Even if AI markets remain competitive today, history and economics show that the Big Tech companies will push to monopolize segments of the AI market if given the opportunity. The investigations serve as a deterrent against anticompetitive behavior and give the regulators access to the knowledge and information that will be necessary to detect anticompetitive patterns as the AI market matures.

John B. Kirkwood explains six ways in which Big Tech’s alliances with AI startups could harm competition, making clear that the antitrust agencies have good reasonto monitor and investigate them.

Vivek Ghosal reviews the data, economics, and market conditions of the growing artificial intelligence market and finds that it is quite dynamic in terms of evolving partnerships and firms, and is relatively competitive. Thus, Big Tech investments into AI startups do not warrant investigation by the government at this time.

Matt Perault writes that there is little indication that Big Tech investments in artificial intelligence startups are harming competition. In fact, the opposite is likely true. Antitrust regulators should instead focus their attention on the real threat to AI competition: rules and regulations that will make it harder for startups that to compete with large tech companies.

Artificial Intelligence (AI) is poised to permeate across different industry sectors, offering unprecedented opportunities alongside significant risks. Effective governance necessitates coordinated cross-border efforts to build institutional expertise, dispel misconceptions, foster innovation, and align global safety priorities. Advocating structured dialogue and a bottom-up approach, Oscar Borgogno and Alessandra Perrazzelli present a proposal which aims to avoid institutional redundancy and legal unpredictability for individuals and firms.

Erik Hovenkamp reviews the findings of Judge Amit Mehta’s ruling against Google for monopolizing the internet search market and discusses what the case will mean for the other ongoing Big Tech cases and the future of antitrust.

Utsav Gandhi discusses the findings of the May 2024 Google SEO leak, which gave analysts a novel, albeit speculative, look into how Google might choose to promote and demote content. The findings have possible implications for businesses and news organizations struggling to compete for views and suggest that transparency could become an increasing factor in the future search market as new, artificial intelligence-powered competitors enter the market.

A United States federal court has found Google in breach of the Sherman Act by pursuing default status for Google Search and Google Chrome. However, Google's motives and the precise ways in which Google Search’s default status serves its interests remain poorly understood by the public and the antitrust community. They pertain to preventing users from migrating to competitors’ offerings in general and, in particular, to capturing user migration to next-generation platforms to access and search the internet. Understanding this motive will be essential in the calibration of forthcoming remedies and provide lessons for future cases against Google and other tech companies also confronted with user migration.