As the US government explores the possibility of breaking up Google, a move authorities say will promote fair competition in the online search market, the Alphabet-owned company has said such “radical” changes “risk hurting consumers, businesses and developers”.
Following a court ruling in August that found Google was unlawfully stifling competition in the market, the Department of Justice is now weighing possible solutions. If its proposals, which could include splitting the company, are accepted by the court, it would be one of the most significant regulatory actions ever taken against a major technology company.
Lee-Anne Mulholland, Google’s vice president for regulatory affairs, said the company is “concerned the DOJ is already signalling requests that go far beyond the specific legal issues”.
“The government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses and American competitiveness,” Ms Mulholland said on Wednesday.
On August 5, a judge ruled that Google was illegally exploiting its dominance to avoid competition. The highly anticipated decision by district judge Amit Mehta comes nearly a year after the start of a trial pitting the Department of Justice against Google in one of the country's biggest antitrust showdowns.
Alphabet, which is expected to announce its latest quarterly earnings on October 22, was trading 2.39 per cent down at $161.74 a share at 1.10pm New York time.
The company’s total net income in the June quarter jumped 28.6 per cent to $23.6 billion, passing estimates of $22.9 billion. While its revenue during the April-June period surged 14 per cent to almost $85 billion, against analysts’ expectations of $84.2 billion.
Google, the world’s biggest search engine, accounts for nearly 90 per cent of all online searches, according to various reports.
“Google’s unlawful conduct persisted for over a decade and involved a number of self-reinforcing tactics,” the Department of Justice said in a court filing on Tuesday. It is expected to submit a detailed report on suggested proposals by November 20.
The company expressed concern on Wednesday, saying that the Department of Justice’s consideration of forcing Google to share search queries, clicks and results with competitors poses risks to privacy and security.
It also warned that restricting its artificial intelligence tools could hinder American innovation at a crucial time, arguing that splitting off Chrome or Android – Google’s flagship line of products – would not only disrupt these platforms but also cause widespread issues across the tech ecosystem.
“While sharing Google’s search results with others might create a few copycats, it could also decrease incentives for other companies to actually innovate in search,” Ms Mulholland said.
“There are enormous risks to the government putting its thumb on the scale of this vital industry [AI] … skewing investment, distorting incentives, hobbling emerging business models … all at precisely the moment that we need to encourage investment, new business models and American technological leadership.”
The Department of Justice is also considering introducing changes in the advertising market and imposing restrictions on how Google promotes its search engine.
California-based Google company said changes to the online advertising market would reduce the value of advertisements for both publishers and merchants, while also reducing their worth to consumers.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
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Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.
A semen analysis of the father showed abnormal sperm so the couple required IVF.
Out of 21 eggs collected, six were unused leaving 15 suitable for IVF.
A specific procedure was used, called intracytoplasmic sperm injection where a single sperm cell is inserted into the egg.
On day three of the process, 14 embryos were biopsied for gender selection.
The next day, a pre-implantation genetic report revealed four normal male embryos, three female and seven abnormal samples.
Day five of the treatment saw two male embryos transferred to the patient.
The woman recorded a positive pregnancy test two weeks later.
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Brief scores:
Toss: Pakhtunkhwa Zalmi, chose to field
Environment Agency: 193-3 (20 ov)
Ikhlaq 76 not out, Khaliya 58, Ahsan 55
Pakhtunkhwa Zalmi: 194-2 (18.3 ov)
Afridi 95 not out, Sajid 55, Rizwan 36 not out
Result: Pakhtunkhwa won by 8 wickets
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
