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Google Cuts 200 Jobs in Global Business Unit Amid AI-Focused Shift

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Google has laid off approximately 200 employees from its global business organization, which oversees sales and partnerships, as the tech giant continues to reallocate resources toward artificial intelligence and data centers, The Information reported Wednesday.

Key Highlights:

  • The cuts were confirmed by Google, which said the changes aim to boost collaboration and enhance customer service effectiveness.

  • This follows earlier layoffs in Google’s platforms and devices division, impacting teams responsible for Android, Pixel, and Chrome.

  • Google-parent Alphabet previously cut 12,000 jobs in January 2023, about 6% of its global workforce.

Broader Tech Industry Context:

Major tech companies are trimming headcount in legacy areas while aggressively investing in AI capabilities:

  • Meta laid off 5% of its “lowest performers” while accelerating AI hiring.

  • Microsoft let go of 650 staff from its Xbox division last September.

  • Amazon and Apple have also enacted selective layoffs across various departments.

These actions signal a strategic pivot across the tech industry to optimize cost structures and prioritize innovation in AI, cloud infrastructure, and machine learning tools.

U.S. Seeks Breakup of Google’s Ad-Tech Business After Judge Finds Illegal Monopoly

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The U.S. Department of Justice (DOJ) is pushing to break up Google’s advertising technology empire, proposing that the tech giant be forced to sell its AdX ad exchange and DFP publisher ad-server platform following a federal judge’s ruling that Google illegally monopolized the online ad-tech market.

In a court filing late Monday, the DOJ stated that such divestitures are essential to restore fair competition in the ad-exchange and publisher ad-serving sectors, where Google — a subsidiary of Alphabet Inc. — has long held dominant positions.

U.S. District Judge Leonie Brinkema ruled last month that Google had “willfully acquired and maintained monopoly power” in both markets. The case marks another major legal setback for Google, coming after a separate ruling last year found the company guilty of maintaining an illegal monopoly in online search.

A September trial date has been scheduled to determine final remedies. While Google has said it is open to behavioral changes, such as giving competitors access to real-time bidding data, the company opposes any forced divestitures, arguing such a move lacks legal standing and would hurt advertisers and publishers alike.

“This goes well beyond the Court’s findings,” said Lee-Anne Mulholland, Google’s VP of Regulatory Affairs. “It would harm publishers and advertisers, and has no basis in law.”

AdX (Ad Exchange) is Google’s real-time ad marketplace, while DFP (DoubleClick for Publishers) is used to manage and deliver ads on websites. Together, they are key tools that allow digital publishers to monetize their content, and their dominance has drawn increasing antitrust scrutiny.

In Europe, Google previously offered to sell AdX to settle an EU investigation, but publishers rejected the offer, calling it inadequate.

Alphabet’s shares fell 1.1% in premarket trading on Tuesday following the DOJ’s filing.

Apple and Meta Hit with Fines as EU Advances Tech Industry Investigations

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Apple and Meta have both been hit with significant fines by the European Union, marking the first sanctions under the EU’s groundbreaking Digital Markets Act (DMA), which aims to reduce the influence of major tech giants. Apple was fined EUR 500 million (approximately $570 million or Rs. 4,869 crore), while Meta faced a fine of EUR 200 million (about Rs. 1,708 crore). These penalties are the result of a year-long investigation by the European Commission into whether these companies were adhering to the regulations set out in the DMA, which was designed to create a more level playing field for smaller competitors in markets dominated by major players like Apple, Meta, and Google.

The fines could increase tensions between the EU and the United States, especially as former President Donald Trump has previously threatened to impose tariffs on countries that penalize U.S. companies. The timing of these fines is particularly sensitive, as Trump cited the DMA in February when he vowed to protect American companies from what he described as “overseas extortion.” While the fines represent a significant step in the EU’s efforts to regulate Big Tech, they also highlight the growing divide between European regulatory bodies and U.S. tech firms, which have long enjoyed a relatively unchallenged position in global markets.

The fines follow the implementation of the DMA, which came into effect in 2023, and signal the EU’s firm stance on enforcing these new rules. The DMA is part of a broader effort to curb the market dominance of companies like Apple, Meta, and Google, with the aim of fostering innovation and competition by providing smaller rivals with greater access to digital markets. Alphabet’s Google and Elon Musk’s X are also reportedly under investigation, and may face similar penalties if they are found in violation of the DMA.

The EU’s decision to press ahead with these investigations is bolstered by a recent ruling from a U.S. court, which found that Google had unlawfully dominated two key online advertising markets. This verdict could pave the way for U.S. antitrust regulators to take further action against Google, potentially even seeking to break up the company’s advertising products. As the EU continues to crack down on Big Tech, these regulatory actions are likely to have far-reaching consequences for the future of tech industry competition and market regulation.