FDA Declares Some Cold Meds Ineffective; Google Faces Monopoly Trial
Why the government is taking on the $1.7 Trillion tech company
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Hi everyone,
Some major news in the health world.
Many of us have basically been taking placebos for our colds. An FDA panel says a common over-the-counter decongestant simply doesn’t work. The ingredient in the oral pills is called phenylephrine.
It’s found in a number of over-the-counter cold and allergy medications, like Sudafed PE, Vicks Sinex and Benadryl Allergy Plus Congestion.
Turns out the good stuff is behind the counter. Ask your local pharmacist.
Aaaah-chooo.
Mosheh, Jill, & Courtney
🎙The Mo News Podcast: Latest on Biden impeachment moves; everything you need to know about the iPhone 15; TikTok gets into shopping; Why workers who get promoted are MORE likely to quit their jobs.
🗞 US V. GOOGLE IN HISTORIC MONOPOLY TRIAL
There is very little that brings a highly partisan US government together like a common villain: the tech industry.
It’s taken three years and two presidents, but the Justice Department has brought a case against Google, saying the company abused its power and paid a ton of money to kill competition. The tech behemoth is now the third largest company in the world (behind Apple and Saudi Aramco) and worth over $1.7 trillion.
This week begins the first monopoly case in 20 years and the first in the new internet age.
SO WHAT IS GOOGLE ACCUSED OF?
The Justice Department says Google has used its internet search dominance to gain an unfair advantage against competitors.
It holds 90% of the search engine market domestically and 91% globally. Search ads were nearly 60% of the company’s revenue in 2022, to the tune of $162.45 billion.
Government lawyers say Google protects its franchise by shelling out billions of dollars every year to be the default search engine on the iPhone and on web browsers such as Apple’s Safari and Mozilla’s Firefox.
“This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition.” ~ DOJ lawyer Kenneth Dintzer
This all started back in 2019. Google and its fellow FAANG companies, Facebook (now meta) Apple, Amazon and Netflix all caught Donald Trump and the DOJ’s attention, part of a broad crackdown on tech companies.
WHAT DOES GOOGLE SAY
Google denies that it’s a monopoly, saying consumers use their search engine because it’s a better product. And if users wanted to, they could just change their settings to use another search engine.
The company argues that its rivals range from Microsoft’s Bing to websites like Amazon and Yelp, where consumers can post questions about what to buy or where to go.
Attorney General Merrick Garland’s Department of Justice is taking Google to court.
WHAT NOW?
The trial is expected to take 10 weeks. Witnesses like Apple’s Eddie Cue, Google’s own CEO Sundar Pichai and other top tech executives are expected to testify.
The case kicked off on Tuesday in a federal court in Washington D.C.
Judge Amit Mehta, an Obama appointee, is presiding.
There is no jury, meaning the final ruling will come down to Judge Mehta.
✔︎ Mo News Reality Check: This case is a major test of whether pre-internet, and in some cases centuries-old laws, can be effective in fighting monopolies in the 21st century.
As far as timing, U.S. District Judge Amit Mehta likely won’t issue a ruling until early 2024. If he decides Google broke the law, another trial will decide what steps should be taken to rein in the company. A ruling could potentially lead to a break up of Google’s companies and/or hefty fines.
Either way, you likely won’t see any changes to your search engine or other Google brands for quite awhile.
⏳ SPEED READ
🚨NATION
📌 McCarthy orders an impeachment inquiry into President Biden (AP NEWS)
📌 As Democratic jitters grow, Biden campaign tries to showcase his vigor (NY TIMES)
📌 US official poverty rate was 11.5% in 2022, Census Bureau says (REUTERS)
📌 Alabama asks Supreme Court to revisit congressional districting map case (WASHINGTON POST)
🌎 AROUND THE WORLD
📌 Videos of ‘earthquake lights’ above Morocco are an unexplained mystery (NY TIMES)
📌 More than 5,000 Dead in Libya after flooding (CNN)
📌 North Korea’s leader arrives in Russia as nations seek closer military ties (AP)
📌 What’s happening with the Iran-US prisoner swap deal? (AL JAZEERA)
📱BUSINESS, SCIENCE & TECH
📌 The mighty American consumer is about to hit a wall, investors say (BLOOMBERG)
📌 Workers who get promoted are then more likely to quit their jobs, new research finds (AXIOS)
📌 Tech CEOs descend on Washington for important AI forum (AXIOS)
📌 A boy saw 17 doctors over 3 years for chronic pain. ChatGPT found the diagnosis (TODAY)
🎬 SPORTS & ENTERTAINMENT
📌 NSYNC reunite at MTV VMAs to present Taylor Swift with award (PEOPLE)
📌 Brady Bunch house sells for $2 million less than list price; Buyer calls it ‘worst investment ever’ (PEOPLE)
📌 N.F.L. reporter files racial discrimination claim against the league after dismissal (THE HILL)
📌 Aaron Rodgers suffers season-ending injury (ESPN)
📌 ‘Drew Barrymore’ protesters bash production as ‘moral violation,’ show ‘regrets’ booting two WGA-supporting audience members (VARIETY)
🗓 ON THIS DAY: SEPTEMBER 13
1990: Law and Order first premieres on NBC.
1993: The Israel-Palestinian peace accord was signed on the White House south lawn. The agreement called for the withdrawal of Israeli troops from the Gaza Strip and the town of Jericho and the establishment of a Palestinian government that would eventually be granted authority over much of the West Bank. The initial agreement was successful in allowing for all that, however a long-term peace deal envisioned that day has yet to come to fruition.
2000: Almost Famous is released in theaters across the US.
2004: Oprah famously gives away cars (Pontiac G-6s valued at $28,500) to all 276 people in her studio audience. However, the winners would each end up having to spend between $6-7,000 in taxes in order to keep their cars.
2009: After Taylor Swift wins for Best Female Video at the MTV Video Music Awards, Kanye West walks on stage and commandeers the microphone, explaining that Beyoncé deserved the award.
When Beyoncé does win for Video of the Year later that night, she brings Taylor on stage to finish her speech.