What's going on?

After a 16 month search into Big Tech, the US government has retrieved its first result: it�s filed a lawsuit against Google for being �anti-competitive� (tweet this).

What does this mean?

Google doesn�t just boast an eye-watering 88% share of the US online search market: it�s also struck a host of exclusive agreements with everyone from Apple to T-Mobile to make its search engine the default on their devices. That�s led the US government to accuse Google of using its overwhelmingly dominant position to make it impossible for rivals to compete. And this isn�t just bureaucratic posturing: it�s the most significant lawsuit of its kind since lawmakers tried to break up Microsoft in 1998, which took three years to resolve.

Why should I care?

For markets: We�re all in this together.
The lawsuit is centered on an exclusive deal that makes Google�s search engine the default for every iPhone. And seeing as Google pays Apple handsomely for the privilege, the latter � no stranger to lawsuits itself � could be bracing for some collateral damage. In fact, the lawsuit alleges this deal could be worth as much as $10 billion every year to Apple � or 15 to 20% of its annual profits. So if it were to go down the drain, it�s safe to say neither tech giant would be too happy.

The bigger picture: Big whoop.
Investors didn�t seem put off by the crackdown: Google and Apple�s shares have kept rising all week, which bodes well for the companies� earnings updates next week. Snap�s recent results do too: the rival tech firm posted better revenue and user growth than forecast late on Tuesday, and revealed its highest growth rates since 2017. That means it�s joined the 86% of US companies that�ve reported better-than-expected results so far this quarter, up from the 73% average for the last 5 years. That stat is best taken with a pinch of salt, mind you: analysts � for obvious reasons � have had trouble predicting numbers this year�