Google lawsuit could have downstream chilling effect on emerging tech startups

By | October 21, 2020
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Google's Detroit office
Tech giant Google, which has at office in downtown Detroit, is being sued by the U.S. government alleging antitrust violations. (Kirk Pinho/Crain’s Detroit Business)

The U.S. government’s lawsuit alleging violations of antitrust laws by technology giant Google marks a new era of uncertainty for emerging startup companies in Southeast Michigan and beyond, according to Erik Gordon, a clinical assistant professor at the Stephen M. Ross School of Business.

The immediate impact of the lawsuit, said Gordon in a recent story in Crain’s Detroit Business, will be a chilling effect in which companies like Google will likely halt any acquisition activity of smaller companies, taking off the table one common barometer of success for startups.

“I think it’s a new world for tech companies,” said Gordon, who focuses on entrepreneurship and technology commercialization, as well as all manner of business finance. “And … most small tech companies dream of being big, powerful tech companies.”