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Home / Technology / Google CEO arrested for the risks of Justice Department litigation and “Code Red”

Google CEO arrested for the risks of Justice Department litigation and “Code Red”



  • Alphabet, Google’s parent company, has just announced amazing results, and its revenue has soared beyond Wall Street’s expectations.
  • This is in the ears of investors, but in the earnings call, CEO Sundar Pichai was arrested in a recent lawsuit by the Ministry of Justice.
  • Analysts and investors worried about the potential impact of this case, and one of them specifically asked whether Google and Apple’s loss of exclusive rights might be “code red.”
  • Pichai also tried to alleviate concerns that the case might be distracting, just like Microsoft did in the 90s.
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Google’s parent company Alphabet just released some impressive third-quarter data, which greatly exceeded Wall Street’s expectations, and its share price rose sharply in after-hours trading.

But analysts and investors cannot escape the vague shadow of the lawsuit filed by the Justice Department against Google last week. During the company’s earnings conference call, CEO Sundar Pichai tried to avoid raising questions about the case and told analysts and investors that Google would “make demands confidently.”

He said: “Regarding the Justice Department’s lawsuit, we believe that our products are bringing great benefits to consumers, and we will be confident in defending this case.” “Our company’s focus is still to continue our work to develop Search products that people like and value.”

But analysts subsequently posed several questions about the lawsuit and Google’s partnership with Apple to maintain the de facto search provider on their devices-an annual transaction of more than $8 billion per year may now become an obstacle.

“Is this really a’code red’ situation, or is it something we should be able to solve?” asked, Barclays analyst Ross Sandler (Ross Sandler) mentioned Google’s internal code name, which may lose lucrative profits Contracts.

“Most of our partners choose us because we are the best search provider,” Pichai replied. “Users find that we have the highest search quality, so the demand for it is organic. We believe that we will invest in our experience on all platforms, so we are absolutely committed to ensuring that we can provide services to our users anywhere, We really focus on it.

Pichai was also asked whether it is possible for Google to find “common ground” with the US Department of Justice.

He replied: “For us, censorship is not new. In a sense, it does not belong to the entire industry. This is not surprising.” “We will engage constructively when possible. As we have shown in some cases in the past… We are confident in the benefits to users, we will make efforts in the case of feedback or rulings, flexible, and adaptable, so we are making it Get involved.

On another point, Pichai apparently tried to alleviate any concerns that the case might distract the company.

When Microsoft tried its case with the US Justice Department in the 1990s, this distracting thought weakened the company’s ambitions and allowed competitors such as Google to take the lead in areas such as mobile.

He said: “Although there are many things in legislation and regulation, as some of these issues are resolved, it will also bring certainty, and in some cases, clarity and opportunity.” “So this This is the framework we will adopt, and we will consider it in the long term.

“But in the end, our control is our ability to relentlessly focus on users and develop great products, and this is where most of our energy is invested.”

During the Apple earnings conference call held by analysts on Thursday evening, CEO Tim Cook was also asked about a profitable deal with Google. According to analysts, Google earns for Apple every year. US$8 billion to US$12 billion. Apple’s CEO underestimated the importance of this deal and the potential for immediate impact.

“I don’t know how the Justice Department’s litigation will proceed, but I think there is still a long way to go before this conclusion.”

Get the latest Google stock price here.

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