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Google Antitrust Trial: Judge Grapples with Competition vs. Gains Dilemma

 |  November 27, 2023

As the US Justice Department concludes the evidentiary phase of its landmark antitrust trial against Google, all eyes are on Judge Amit Mehta, who must grapple with the complex question of whether a tech giant’s dominance in the market, achieved through potentially anticompetitive practices, can be justified by the benefits it brings to its own business and customers, reported TechCrunch.

Closing arguments in this high-stakes trial, which could shape the future landscape of the internet and antitrust law, are scheduled for May 2024. At the heart of the matter is the conundrum of determining whether a company can engage in practices that stifle competition if they simultaneously enhance the quality of the product or service offered.

Legal scholars, including Doug Melamed from Stanford University, emphasize the unprecedented nature of this case. “Antitrust law is very unsettled about what courts should do when they find both harm and benefit,” Melamed told TechCrunch. “Courts usually avoid the issue by finding one or the other, but not both.”

Google’s stronghold on the search market, with a market share ranging between 83% and 91% since 2015, is a central point of contention. The company achieved this dominance, in part, by entering agreements with smartphone manufacturers, such as Apple and Android, to make Google the default search engine. While this strategy solidified Google’s monopoly, it simultaneously hampered the ability of competitors to challenge its market dominance.

Read more: Google Files New Antitrust Complaint Against Microsoft Azure

According to TechCrunch, the dual nature of these default agreements presents the court with a unique challenge. On one side, there is a clear acknowledgment that Google’s practices have hindered competition, potentially violating antitrust laws. On the other side, these agreements have undeniably benefited Google, its consumers, and advertisers by generating valuable data that has improved the quality of its search products over time.

Legal experts, such as Melamed, suggest that the court now faces the daunting task of determining the lawfulness of Google’s defaults. These defaults, while diminishing competition and preserving Google’s monopoly, have also led to legitimate efficiency benefits.

“So you might have a finding that the default agreements both harm competition and create benefits – legitimate, cognizable benefits,” explained Melamed.

As Judge Mehta navigates this complex terrain, the outcome of this case could not only shape the future of one of the world’s most influential tech companies but also set important precedents for the interpretation and enforcement of antitrust laws in the ever-evolving digital landscape.

Source: Tech Crunch

Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal

Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal

 |  January 10, 2025

US-based nuclear power giant Constellation Energy has announced a landmark deal to acquire privately-held natural gas and geothermal company Calpine Corp for $16.4 billion in a move that reshapes the American energy landscape. The acquisition, one of the largest in the history of the U.S. power sector, comes at a time of surging electricity demand driven by the rapid expansion of energy-intensive technologies like artificial intelligence and the ongoing electrification of transportation and buildings.

According to Yahoo the agreement will transform Constellation into the largest independent power provider in the United States, with a diverse portfolio spanning nuclear, natural gas, and geothermal energy sources. The deal, which also includes Calpine’s debt, values the transaction at $26.6 billion.

Following the announcement, Constellation’s stock surged by as much as 10% before markets opened, with gains extending to 22% shortly after trading began. The company expects the acquisition to close in the second half of 2025. Once finalized, the merger is projected to add $2 billion in annual free cash flow, further strengthening Constellation’s financial position.

Read more: Federal Competition Office to Scrutinize High Electricity Prices in Germany

The acquisition reflects the growing urgency for reliable and sustainable energy solutions. Per Yahoo, the combined entity will boast nearly 60 gigawatts (GW) of low- and zero-emission capacity, allowing Constellation to solidify its position as a key player in the nation’s clean energy transition. CEO Joe Dominguez emphasized the critical need to meet rising energy demands, saying, “Demand for our products is expected to grow by levels we haven’t seen in a lifetime.”

The transaction significantly expands Constellation’s geographic footprint, particularly in the high-demand markets of Texas and California. With this deal, Constellation’s share of generation capacity in Texas will jump from 11% to 23%, while its presence in California will rise to 10%, up from a negligible amount. Both states rank among the most populous and energy-intensive in the country.

Aneesh Prabhu, an analyst with S&P, described the deal as transformative, noting that the merger will create “the largest coast-to-coast power generator” in the U.S. The acquisition will also boost Constellation’s workforce by 20%, adding approximately 2,750 employees to its ranks and bringing the total headcount to 16,500.

Source: Yahoo