Google may face the danger of being forcibly spun off.
The US Department of Justice is considering seeking to split Google
Google suddenly showed a bearish trend, and its stock price fell by over 1% after hours.
According to reports, the US Department of Justice is considering seeking to split Google after winning an antitrust lawsuit.
This move will be the first time since Washington's failed attempt to spin off Microsoft 20 years ago that the US government has used illegal monopolies to spin off a company. According to informed sources, other relatively less stringent options include forcing Google to share more data with competitors and taking measures to prevent Google from gaining unfair advantages in artificial intelligence products.
Anyway, the US government is likely to seek a ban on exclusive contracts. Exclusive contracts are the core of Google's antitrust case, referring to the default search engine agreements reached between Google and companies such as Apple.
Insiders say that if the US Department of Justice advances the spin off plan, the most likely departments to be spun off are Google's Android operating system and Google's web browser Chrome. Moreover, officials from the Department of Justice are also considering forcing Google to sell its platform AdWords, which is used for selling text ads.
Last Monday, Judge Amit Mehta of the US Federal Court announced a ruling that Google's search business violated US antitrust laws. This means that in the largest antitrust case in the US technology industry in more than 20 years, the plaintiff, the US Department of Justice, won the lawsuit. The way millions of Americans access information online may change dramatically, and Google's dominant position in the search market for decades may be overturned.
Judge Mehta announced that another trial will be held on September 4th to discuss and decide how to deal with Google's monopolistic behavior, such as what kind of fines to impose on Google or what changes to require it to make. At that time, Google has the right to appeal, and experts estimate that this legal process may take about two years.
Nvidia skyrocketed by over 1.2 trillion overnight
However, last night, all three major US stock indexes closed higher, with the Dow Jones Industrial Average up 1.04%, the S&P 500 index up 1.68%, and the Nasdaq up 2.43%.
Intel rose 5.73%, Nike rose 5.15%. Nvidia rose 6.53%, with its market value increasing by approximately RMB 1253.7 billion overnight. Tesla rose 5.24%. Starbucks rose 24.5%, the largest daily increase in history. Chinese concept stocks fluctuated, with Huya Live up 14.01% and Tencent Music down 15.16%.
In terms of news, the Federal Reserve's Bostic said that the balance of economic risks is returning to normal levels and is optimistic about the normalization of the economy in the coming months; Interest rate policy is restrictive and we do not want it to remain at this level forever. The interest rate cut is coming soon, and I hope to see more data. If we have to raise interest rates after cutting interest rates, it will be a very bad situation; If the economy develops as expected, there will be a rate cut before the end of the year.