U.S. Takes On Google in Biggest Antitrust Trial in Decades
WSJ What’s News
The Wall Street Journal
4.1 • 4.2K Ratings
🗓️ 12 September 2023
⏱️ 16 minutes
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| 0:00.0 | People are living longer, so the career you expected to cap off at 40 years could last 60. |
| 0:06.5 | There are very few people who can work 40 years and save enough money to not work for another 30. |
| 0:13.0 | Get ready for a 60-year career with a special series on your money briefing from the Wall Street Journal, Wednesdays in September. |
| 0:21.0 | It's the U.S. V. Google as a historic antitrust case gets underway in Washington. |
| 0:32.0 | Plus Tesla shares surge after a major upgrade by Morgan Stanley and businesses brace for more climate reporting as California advances a bill requiring disclosure of their indirect emissions. |
| 0:46.0 | Everyone is preparing for the big accounting firms. A whole bunch of startups are all in the business of helping companies do this. |
| 0:54.0 | And companies complain all the time, but they're all thinking about this. |
| 0:58.0 | It's Tuesday, September 12th. I'm Luke Vargas for the Wall Street Journal, and here is the AM edition of What's News, the top headlines and business stories moving your world today. |
| 1:09.0 | America's biggest antitrust trial in 20 years will get underway today, pitting the Department of Justice against Google. |
| 1:22.0 | The government is alleging that Google has an illegal monopoly in online search, where it commands about a 90% market share, and that it maintains that dominance through restrictive agreements with phone makers to make its search the default on browsers. |
| 1:38.0 | General reporter Miles Krupa says that where the government alleges unfair exclusion of competition, Google says it's simply giving browser providers and users what they want. |
| 1:50.0 | Google's argument is basically there is no case here because it is still very easy to switch to other services. |
| 1:58.0 | These contracts, Google argues, aren't exclusive, and they are not exclusionary. They are merely away for Google to promote its search engine like a serial brand would promote its goods on an eye level shelf in the grocery store. |
| 2:16.0 | You don't hold your breath for a speedy ruling though, a judgment isn't expected until 2024, and with any decision likely to be appealed, a final outcome might be years away. |
| 2:27.0 | And you can hear much more about this case and how it compares to the DOJ suit against Microsoft in 1998 on today's tech news briefing, wherever you get your podcasts. |
| 2:39.0 | The DOJ has supercharged its valuation. Shares in the EV Maker jumped 10% in trading yesterday after analysts at Morgan Stanley said a supercomputer that Tesla is developing could add half a trillion dollars in enterprise value to the company. |
| 2:57.0 | The DOJ project is expected to speed up self-driving capabilities and enable Tesla to sell the AI technology to automakers as well as other industries in the future. |
| 3:08.0 | According to FACSET, Morgan Stanley's $400 Tesla price target is the most bullish on Wall Street, though it remains below the company's all-time trading high of $414. |
| 3:21.0 | And speaking of high price tags, the average cost of a smartphone in the US has risen by 11% each year, since 2017, a pace more than three times above inflation. |
| 3:33.0 | And that trend is likely to continue when Apple launches its iPhone 15 later today, with analysts expecting the company to raise prices by as much as $100 on some phone models. |
| 3:45.0 | However, hurt on the street columnist Dan Gallagher told us the increase has less to do with major tech upgrades than slimming growth prospects for the global smartphone industry. |
| 3:55.0 | Because smartphones are now a mature market that often now declines on an annual basis, the way that smartphone makers like Apple and Samsung can grow revenue is by raising prices. |
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