Jim Cramer has raised doubts over the validity of the government’s antitrust lawsuits against Big Tech giants such as Apple Inc. AAPL, Alphabet Inc.’s GOOG GOOGL Google, and Amazon.com Inc. AMZN.
What Happened: “Mad Money” host Cramer questioned the antitrust lawsuits against Apple, Google and Amazon. He suggested that the government’s actions are more about curbing the influence of these large corporations than about any actual legal violations.
The Federal Trade Commission (FTC) and the Department of Justice (DOJ) have accused these companies of various anti-competitive behaviors.
Amazon is alleged to have used its monopoly power to inflate prices and exclude rivals, while Google is accused of abusing its search and digital advertising dominance to the detriment of website creators, advertisers and rivals.
Apple, according to the DOJ, maintains a “smartphone monopoly” that hampers consumer choice and developer opportunities.
Cramer, however, maintains that these companies have not broken any laws. He argues that the government’s desire to diminish the power of these corporations is driving the lawsuits, rather than any illegal activities.
“It’s not illegal to beat your competitors,” Cramer stated, emphasizing his belief that the lawsuits lack merit.
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Why It Matters: The antitrust lawsuits against these tech giants have been a topic of heated debate.
Amazon has been under scrutiny for a secret algorithm, code-named “Project Nessie,” alleged to manipulate prices.
Google has been accused of maintaining its search engine’s exclusivity through agreements with Apple and Android phone makers.
Apple called the DOJ lawsuit “dangerous” and said that it threatens its core principles and ability to innovate.
Despite these legal headwinds, major Wall Street investment banks such as Goldman Sachs and Bank of America have reiterated optimistic views on Apple, citing its “unmatched brand strength.”
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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