Business Development Report: Google's Antitrust Issues and Strategies

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This report provides an analysis of Google's antitrust issues, specifically focusing on the European Commission's penalties related to its online advertising practices. The report details the context of the fines, which stem from violations of antitrust regulations, and the impact on competition and consumers. It discusses Google's strategic position, including its market dominance and approach to innovation and market expansion. The report also highlights the issues that led to the fines, such as the misuse of market supremacy and actions that restricted competition. The analysis covers Google's responses to these issues, including modifications to its products and a focus on transparency. Finally, the report examines Google's strategic actions, including its stance on threats, harassment, and intellectual property rights, and provides an evaluation of the company's actions. References to relevant literature are included to support the analysis.
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Introduction:-
European Commission penalized Google about approximate 1.8 billion dollars in 2019 on
charges that its publicizing practices violated antitrust regulations, marking the third time in as
several years that the area's watchdogs have castigated the United States tech giant for damaging
rivalry and consumers. This report is describing these issues and also defines some analysis of
these situations.
Discussion:-
Google is an American international technology corporation that focusses on Internet-
related facilities and products, which contain online promotion skills, search engines, and cloud
computing, hardware, and software (Xie et al. 2016, 29-31). It uses a copyrighted algorithm
that's calculating to recover and command search results to deliver the most relevant and
trustworthy sources of documents possible. Google is the world's best search engine, and it has
made concern and criticism about the power it has to inspire the flow of evidence on the Web.
On the other hand, the European Commission is the administrative division of the
European Union, answerable for proposing a regulation, applying decisions, keeping the EU
agreements, and handling the daily business of the EU.
Strategic position:-
The standard strategy of diversity means that this organization must continue its generous
benefit based on uniqueness. It is of dangerous position for the firm to continue revolutionizing.
A consistent tactical objective is to improve innovative products or remain improving existing
products. In this method, Google will be capable of saving its competitive benefits in using the
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separation generic reasonable approach in the face of robust and forceful rivalry from other
technology companies.
This organization also applies the market progress intensive approach for growth. In
market expansion, the business's objective is to draw clients in new market sections over
innovative uses of existing products. In this circumstance of Google, this exhaustive growth
policy is useful by proposing new uses of present online facilities (Li et al. 2014, 897). These are
proposing cloud facilities as new apparatuses for application computer operators, in addition to
existing uses of the facilities. Thus, applying the market expansion intensive plan for growth,
Google wishes to deal with its products to more parts globally.
The business has been criticized for appealing in seemingly unequal product expansion
efforts in different businesses and markets. Conversely, to progress its strategic arrangement,
Google can first concentrate on confirming the effectiveness of more of its present products
before incoming new industries. It is also applying automatic driving in partnership with
numerous auto brands. Prospect is full of contests, and separately from user documents related
rules and rivalry, other encounters can be a difficulty to rapid growth. The tech world is
developing faster. It will stay to change, but the role Google has played in altering the web world
and creating it comfortable and suitable to access evidence and other sources online is
unquestionably significant.
Modification is an active business plan of Google because it has permitted the business to
make innovative markets and recollect existing clients or users, thereby making a universal
customer base of Google-dependent Internet operators (Schmidt 2016, 1045). Additionally,
modification has allowed the Internet giant to place itself as a one-stop place for entire Internet-
related requirements. This organization further corners these technology-reliant clients by
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creating other industries from other activities and sectors dependent on its facilities and
merchandise. The outcome is an environment of varied industries, products, and merchandises
and facilities in which Google plays an influential role.
Issues:-
EU fined Google:-
In the year 2019, the European Commission penalized Google 1.8 billion dollars for
breaking EU antitrust guidelines concerning offensive practices in online marketing. The
European Commission specified that Google harmed its marketplace supremacy by applying its
position to contain in several clauses in agreements with website proprietors that controlled how
and whether they could display participants' search advertisements on their search effects pages.
These participants were then unable to contend on the qualities (Rothaermel 2016, 5). There was
an absolute exclusion for them to perform on originator websites or because this authority kept
for themself by far the most respected profitable space on those websites, while at the similar
time monitoring how competitor search advertisements could perform .
These activities amounted to a misuse of Google's market supremacy under EU antitrust
rules by avoiding rivalry on the qualities of competitors in the online search marketing
intermediation market (Martins 2018, 180-183). The commission marked that market supremacy
is not unlawful under EU antitrust instructions. However, leading businesses have distinctive
accountability not to misuse their influential market place by limiting rivalry, either in the market
where they are leading or in distinct markets.
In reply, Google's authority stated that they have always approved that durable,
prosperous markets are in everyone's attention. They have already prepared an extensive range of
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variations to their products to locate the Commission's anxieties. Over a few times, Google will
be creating more updates to provide more perceptibility to competitors in Europe (Plaček et al.
2016. 105-107). Outside of its evaluation of performs by Google. The EU has accepted strict new
secrecy instructions that many nations outside the UK now interpret as a pattern. Controllers here
have also examined tech enterprises' tax practices and named for additional analysis of AI.
Evaluation for Action:-
This strategy is intending to provide supervision to developers constructing on the
Activities on Google platform, counting Actions that will be circulated in the Directory. Google
does not permit Actions that enable threats, annoyance, or bullying (Thomas and Kimberlie
2015, 8-9). These contain content principally proposed to harass or single out a different
individual for abuse, mischievous outbreak, or ridicule. Google does not permit Actions that
enable or encourage illegal events where the people are primarily answerable for defining the
validity of their Action in its targeted location. Actions determined to be illegitimate in localities
where they are circulating will be detached. This organization also does not tolerate Actions that
inspire or induce a violation of knowledgeable property rights.
Conclusion:-
In this report, the writer is describing one current issue of Google. The European
commission is fined Google for some untrustworthy reasons. This report is describing all such
things which are related to these issues. In the final part of this report describe the evaluation of
action in Google.
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References:-
Li, Aaron Q., Amr Ahmed, Sujith Ravi, and Alexander J. Smola. "Reducing the sampling
complexity of topic models." In Proceedings of the 20th ACM SIGKDD international conference
on Knowledge discovery and data mining, pp. 891-900. 2014.
Martins, Ciro Silva. "European Commission v. Google Inc.: lições sobre a responsabilidade
especial do agente econômico dominante." Revista de Defesa da Concorrência 6, no. 1 (2018):
173-197.
Plaček, Michal, František Ochrana, Martin Schmidt, and Milan Půček. "The Evaluation of the
Role of the Office for Protection of Competition of the Czech Republic in Regulating Public
Procurement." (2016): 97-116.
Rothaermel, Frank T. 2016. Strategic management: concepts. Vol. 2. McGraw-Hill Education.
Schmidt, Vivien A. "Reinterpreting the rules ‘by stealth’in times of crisis: a discursive
institutionalist analysis of the European Central Bank and the European Commission." West
European Politics 39, no. 5 (2016): 1032-1052.
Thomas, Gail Fann, and Kimberlie J. Stephens. "An introduction to strategic communication."
(2015): 3-11.
Xie, Liou, Zhenshan Yang, Jianming Cai, Zhe Cheng, Ting Wen, and Tao Song. "Harbin: A rust
belt city revival from its strategic position." Cities 58 (2016): 26-38.
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