CNBC’s Jim Cramer recently voiced strong disagreement with the U.S. Department of Justice (DOJ) over its consideration of breaking up Google.
According to Cramer, the tech giant plays a vital role in benefiting consumers, businesses, and the overall U.S. economy, and he questions the DOJ’s move, which he perceives as misguided and potentially harmful.
Google’s Positive Impact on Society
Cramer emphasized that despite Google’s extensive reach and dominance in numerous markets, ordinary people continue to place a high value on it. He emphasized that Google Search and YouTube are valuable services, offering immense benefits at little to no cost to consumers.
“Google’s an aggressive company. It possesses extensive reach, wields significant power, and operates in numerous markets.
But I defy you to find any regular people in this country who think of Google as a bad actor,” Cramer stated. “Google search is the most incredible bargain in the world, and the same goes for YouTube.”
Cramer’s defense of Google comes amid ongoing scrutiny of Big Tech companies by U.S. authorities. The DOJ filed an antitrust lawsuit against Google in 2020.
Accusing the company of holding an illegal monopoly on search and digital advertising. Recently, a U.S. judge ruled that Google indeed holds an illegal monopoly in the search and text advertising space.
DOJ’s Consideration of Google’s Breakup
The DOJ’s case against Google has escalated, with the government considering a breakup of the company as a potential solution to its alleged monopoly power. The DOJ released a filing that outlined several recommendations to prevent and restrain Google’s ability to maintain its monopoly.
These recommendations included contract requirements, prohibitions on discrimination, and potential structural changes that could break up Google’s search business.
The filing suggests that the DOJ may push for more than just regulation, with the possibility of splitting the company as a means of addressing the antitrust concerns.
Cramer’s Broader Criticism of Government Intervention
Cramer didn’t just criticize the DOJ’s focus on Google—he extended his criticism to other ongoing investigations into Big Tech companies.
He referenced the DOJ’s antitrust case against Apple and the Federal Trade Commission’s (FTC) case against Amazon, both of which accuse these companies of holding too much power in their respective industries.
“These Big Tech outfits are the envy of the world,” Cramer said, asserting that companies like Google, Apple, and Amazon help drive the U.S. economy and provide opportunities for investors.
According to Cramer, they have also contributed to making information and technology more accessible to the general public. He further argued that Google has been “an incredible equalizer and an amazing learning tool” for society.
Cramer described the ongoing government investigations into these tech companies as “wrong-headed, pointless, and, frankly, even anti-American.
In his view, the government’s actions threaten the innovative spirit that has allowed these companies to thrive and bring benefits to consumers and investors alike.
Google’s and DOJ’s Silence on the Matter
Despite the attention the DOJ’s recommendations have garnered, Google has declined to comment on the matter, and the DOJ has not provided any immediate responses to requests for clarification.
As the case continues to unfold, the potential for a landmark decision regarding the breakup of one of the world’s largest tech companies looms on the horizon.
Jim Cramer’s criticisms reflect a broader debate on the role of government in regulating Big Tech. While the DOJ aims to address concerns over monopolistic practices, Cramer and others argue that companies like Google provide significant value to consumers and the economy. As the legal battle continues, the future of Google’s structure and its impact on the tech industry remain uncertain.
