In August 2024, the U.S. Department of Justice (DOJ) ruled that Google violated antitrust laws by collaborating with Apple, Android device manufacturers, and others to ensure Google Search remained the default option, thereby limiting market opportunities for competitors. Google leveraged advertising revenues to expand its operations, further cementing its monopolistic position. The DOJ has demanded that Google separate its advertising division from its search business to prevent monopolistic practices from stifling innovation among other market players.
On the other hand, NVIDIA, which holds over 90% of the GPU market share, has also become a focus of antitrust scrutiny. This year, NVIDIA's acquisition of the Israeli AI company Run:ai triggered investigations by the EU, the U.S., and the UK. The Europeanis set to rule on the legality of this acquisition on December 20. NVIDIA CEO Jensen Huang emphasized that innovation is the key to success, not suppressing competitors. However, concerns remain that the company's massive market scale could lead to monopolistic tendencies.
Historically, antitrust issues have led to the breakup of major companies, such as Standard Oil in 1911 and AT&T in 1984. Taiwan's AU Optronics also faced significant penalties from the U.S. DOJ in 2010 for price-fixing in the LCD panel market. Despite claiming no intent to monopolize, the company faced heavier fines and penalties due to its refusal to plead guilty, with three of the six defendants eventually serving prison sentences.
Antitrust laws aim to protect innovation and fair competition, preventing any single player from dominating the market. The challenges faced by Google and NVIDIA highlight that even successful enterprises must adhere to market regulations to uphold competition and consumer interests.
