Sexual Harassment Allegations Shake Google's Antitrust Defense Team: Report

Alphabet Inc GOOG GOOGL Google, bracing for its upcoming antitrust trial, has suffered a significant setback with the departure of former FTC Commissioner and legal scholar Joshua Wright. The search giant cut ties with Wright after he faced a barrage of sexual harassment allegations, including complaints from eight women. 

The allegations ranged from flirtatious texts to claims of sexual relationships, causing Google to sever its association with him, the New York Post reports.

Also Read: FTC Chair Lina Khan's Impact? Amazon Hires Dozens of Former FTC Officials

Key Antitrust Voice Exits Wright had played a crucial role in Google's legal and public relations strategy in preparation for the trial, scheduled to commence in federal court in Washington next week. 

Insiders revealed that Google had plans to deploy him to challenge the Department of Justice, author op-eds, and work behind the scenes as their key antitrust advocate.

 Wright's departure leaves Google without a prominent figure in its antitrust defense. Meanwhile, the U.S. Justice Department alleged Google's breach of antitrust law to build and maintain its search dominance. 

The DOJ prosecuted Google in 2020 for exploiting its influence to eliminate rivals.

Google drew other antitrust complaints involving dominance of the digital advertising business and Play Store. 

Global regulatory authorities even proposed divesting Google's services to end its influence over rivals.

Wright had received substantial advising fees from clients, including Google and Amazon.Com Inc AMZN. Additionally, major tech companies had donated significantly to George Mason Law School, where he taught. 

Throughout his career, Wright authored numerous articles emphasizing the perils of breaking up monopolies. 

He contended that the U.S. housed the world's most successful companies due to its competition laws. However, he cautioned that altering the existing framework could jeopardize this status, potentially marking the end of an era. 

This development comes at a challenging time for Google, which already faces federal allegations of using illegal deals with smartphone manufacturers, including Apple Inc AAPL, to establish a search engine monopoly.

Price Action: GOOG shares traded higher by 0.05% at $136.27 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.