Good morning. In today’s edition:

• 🔍 Google Search is an illegal monopoly, a federal judge rules
• 💸 Colleges are turning to side hustles to drum up revenue
• 🇪🇬 The Pyramids + water-powered hydraulic lifts

… and more.

🚀⏰ Ready, Set, Go: Today’s news should be a ~4.87-minute read (1,296 words).

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"No great discovery was ever made without a bold guess."

–Sir Isaac Newton (1643-1727)

A federal judge ruled yesterday that Google Search – similar to a player with Boardwalk, Park Place, and hotels on all the yellow and green properties – is an illegal monopoly and acted like one to maintain its dominance. It marks the first antitrust decision against a tech company in decades.

The ruling pertains to two market areas: search and text based advertising (the ads that appear alongside search results). It honed in on two main areas:

• Google’s exclusive search agreements. The tech giant has contracts with companies like Samsung, Apple, and Mozilla that involve Google paying its partners a fee + revenue share to remain the default search engine on devices and web browsers. In 2022, Google paid Apple $20 billion + 36% of its search ad revenue from Safari for default position on the browser – a figure representing ~3x more than the company’s other search-related costs combined, including R&D.
• The ensuing feedback loop. While these exclusive agreements make it difficult for startups to compete and gain market share in search, the traffic generated by these agreements feeds data into Google – which then can use this info to improve its products even further.

Google argued in a trial last year that its dominant position in the industry – currently controlling ~90% of online search and ~95% of mobile search – was a result of its product and services simply being better.

But the judge disagreed, saying the evidence at trial showed the importance of default settings when it comes to usage. One cited example: Microsoft's Bing search engine has 80% share of the search market on the Microsoft Edge browser.

• Essentially – regardless of whether Google’s services or products are better, its exclusive agreements have an impact on consumer choice and are examples of the company acting illegally to maintain its monopoly. Testimony from former Google exec Sridhar Ramaswamy just about sums this up: “[the exclusive agreements] basically freeze the ecosystem in place.”

Looking ahead… The case is far from over. The judge hasn’t yet posited any remedies for Google’s actions, and an appeal is almost certain to happen.

⚖️ Zoom out: Other Big Tech companies currently facing antitrust lawsuits include: Meta, Apple, Amazon, and Google (this time related to ad tech).

Over the last 20 years, record prices achieved for Banksy’s art have grown at an astounding 63% compound annual rate. Even more impressive? It's not just the ultra-wealthy benefiting from this phenomenal growth. Thanks to Masterworks.

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🇧🇩 Bangladesh’s leader resigned and fled the country amid mass anti-government protests. The demonstrations began last month as student-led protests against a government job quota system, then later escalated into wider protests calling for the overthrow of PM Sheikh Hasina. The demonstrations led to the arrests of 10,000+ people, at least 250 deaths, a near-total internet shutdown, and protesters storming and looting the presidential residence unopposed. Hasina, who fled to India following her resignation, said she won’t attempt to regain power after serving 20 years as PM.

🇨🇳 China has been circumventing US restrictions on AI chips, per the NY Times. While the US recently banned the export of advanced AI chips to China due to national security concerns, a new NY Times investigation uncovered a multi-million dollar black market involving the shipment of hundreds or thousands of banned AI chips to China. The investigation also found China is using some of these US chips for supercomputing systems and to model nuclear weapons.

🇬🇧 The UK is experiencing mass anti-immigration protests. Demonstrations broke out late last month following a local stabbing attack that killed three children. Rumors spread online that the suspect was an asylum seeker, but police later clarified the suspect was a UK national with Rwandan parents. The attack sparked anti-Muslim and anti-immigration riots, leading to 400+ arrests and the destruction of multiple buildings, hotels, a mosque, and housing for asylum seekers.

Smaller US colleges have faced more problems than a math student in recent years, with flagging enrollment and falling revenue straining the finances of schools nationwide.

In response, a growing number of colleges are looking to boost revenues by hosting non-degree-related activities on campus:

• Virginia’s Sweet Briar College recently began offering lessons on horse riding and winemaking, along with an annual arts and writing retreat.
• The Rhode Island School of Design is now hosting weddings, conferences, memorial services, and corporate events across the school’s architecturally diverse campus.
• California’s Whittier College recently opened its doors for regular yoga sessions, wellness workshops, and Jane Austen Society brunches.
• Endicott College in Massachusetts earns ~5% of its total operating revenue, or $9 million/year, from auxiliary activities like hosting on-campus weddings and summer camps.

These side hustles come as many smaller US colleges are feeling the heat. Over the first half of this year, roughly one higher education institution per week has announced it would close or merge, a pace ~2x higher than 2023. Overall, at least 62 public or nonprofit colleges have closed or merged since March 2020, largely due to factors like declining enrollment/revenues, FAFSA issues, and pandemic losses.

👀 Looking ahead… Roughly 200 small US colleges (enrollment < 5,000) currently show signs of being under strong financial pressure, per a recent Bloomberg analysis of federal data.

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“The hydraulic lift mechanism seems to be revolutionary for building stone structures and finds no parallel in our civilization.”

• A team of French engineers and geologists have developed a new theory for how the massive pyramids of ancient Egypt were built more than 4,000 years ago (apart from aliens, of course). In a study published yesterday, the research team presented evidence the 205-foot-tall Step Pyramid of Djoser was likely constructed with the help of a water-powered hydraulic lift to move heavy materials. Their novel theory is based on several previously unexplained structures within the pyramid, which they argue served as mechanisms to raise a floating platform capable of transporting large rocks to the summit. However, some within the scientific community say the researchers’ new theory doesn’t hold…water for several reasons, including the fact that a major water source near the Step Pyramid of Djoser isn’t mentioned in any ancient Egyptian writings.

• ☝️ The 2024 World Dog Surfing Championships took place at California’s Pacifica State Beach this weekend, with hundreds of dogs competing in front of thousands of spectators.

BUSINESS & MARKETS

in partnership with Asutra

• 💰 US markets closed down across the board (S&P: -3.0%; Dow: -2.6%; Nasdaq: -3.4%); the Dow and S&P registered their biggest daily losses since September 2022. | 📉 The Nikkei, Japan’s stock market, turned in its biggest single-day loss since 1987 on Monday (-12.4%); the index regained some of its losses in early trading on Tuesday.
• 🍫 Food giant Mars, which owns brands like M&M's and Snickers, is reportedly exploring an acquisition of Kellanova, maker of snacks like Cheez-Its and Pringles; Kellanova’s market value including debt is ~ $27 billion.
• 📝 Restaurant chain Buca Di Beppo filed for bankruptcy.

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SPORTS, MEDIA & ENTERTAINMENT

• 🥇 The Olympics: Armand Duplantis of Sweden broke his own pole vault world record en route to a gold medal. | Simone Biles finished her Paris run with a silver medal in the floor routine. | China and the US are neck-and-neck in the gold medal race, while America comfortably leads in total medals; see the overall medal count.
• 🐉 HBO’s House of the Dragon will end with Season 4, the showrunner confirmed yesterday; HOTD’s Season 2 finale, released Sunday, is currently rated 6.6/10 on IMDb – far below the series average of 8.4. | 🇺🇸🏆 Alma Cooper, a US Army officer from Michigan, was named Miss USA 2024 on Sunday; her victory comes months after the resignation of 2023’s winner led to shakeups at the Miss USA organization.
• 🏈 College football is (almost) back: The preseason Coaches Poll top 25 rankings were unveiled yesterday; Georgia ranks No. 1 for the second straight year, with 8 of the top 9 teams from the SEC or Big Ten.

SCIENCE, SPACE & EMERGING TECH

in partnership with Surshark VPN

• 🤖⚖️ Elon Musk revived his lawsuit against OpenAI; the case centers around allegations that CEO Sam Altman manipulated Musk into believing OpenAI – which Musk helped launch – would be nonprofit.
• 🌱 Scientists discovered plant and insect remains under a two-mile-deep ice core extracted from Greenland, providing the first direct evidence that nearly all of Greenland was home to a green, tundra landscape within the past million years.
• 💊 Studies being used to determine whether the US should authorize an ecstasy-based drug for PTSD patients failed to account for serious side effects like suicidal thoughts, and were also marked by bias, per a new Wall Street Journal report.

*From our partners: 💰🚨 In 2023, ransomware victims paid out more than $1B… and the problem isn’t getting better. Become invisible online and protect yourself from cybercrime/tracking with Surfshark VPN. Get 86% off + 3 months extra on Surshark VPN here.

MISCELLANEOUS

• 🌀 Hurricane Debby made landfall on Florida’s Gulf Coast as a Category 1 storm early yesterday, before weakening to a tropical storm by the afternoon; at least four deaths were attributed to the storm; some areas of Georgia and the Carolinas are projected to see up to 30 inches of rain from Debby in the coming days.
• 🌿 Ohio residents can legally purchase recreational marijuana starting today.
• 🇮🇷🇮🇱 US Secretary of State Antony Blinken on Sunday reportedly warned his counterparts from G7 countries that Iran and Hezbollah could launch a planned retaliatory attack against Israel within 24-48 hours.

CLICKBAIT

• 🤔🏡 What does the biggest home in each state look like?

🏥 Stat of the Day: In recent years, US insurance companies have pushed Medicare nurses to run unnecessary screening tests and add unusual diagnoses during patient home visits in an effort to collect extra money from the federal government, according to a new Wall Street Journal investigation. Between 2019 and 2021, the WSJ found insurance companies who pushed such behavior earned an additional $1,818/visit on average, which adds up to an extra ~$15 billion collected from Medicare over that period.

🤔 Did You Know? Roughly 40% of the world’s population will never experience a nosebleed over the course of their lifetime. To be clear: we’re talking about blood pouring out of a nose, not sitting far away from where the action takes place (front row seats?? In this economy???).

📰 Worth a Read: A visual deep-dive into the ancient Olympic games → (Reuters)

Here are five stats from this past week that made our team go “whoa.” Hopefully you will, too.

• 🌆🍽️ Tokyo is home to 180 Michelin-starred restaurants – more than 2x any other city in the world outside of Paris (132) and Kyoto (100). (Read more)
• 🏆🏢 For the first time since 2018, the US has more companies on Fortune's Global 500 list than China (139 vs. 133). (Read more)
• ⚾ The Chicago White Sox had lost each of their past 20 games prior to last night, marking the longest losing streak in franchise history as well as the worst streak in the MLB since 1988. (Read more)
• 🚬 An estimated 4.5 trillion cigarette butts are thrown on the ground each year, making them the most littered item on the planet, per the WHO. (Read more)
• 🍿 Disney is the first studio in 2024 to surpass $3 billion in worldwide ticket sales; it’s done so with just four releases, including Deadpool & Wolverine and Inside Out 2. (Read more)

Yesterday, we covered how the US economy has shown signs that it’s starting to slow down – and Friday’s jobs report marked the strongest such indicator to date.

❓ Our question to you: All things considered (employment situation, stocks, inflation, etc.), do you think your personal financial situation will be better or worse six months from today?

• 👍 Better: 38%
• 👎 Worse: 31%
• 🤷 Unsure/other: 31%

Click here to read the most thoughtful longform responses.

+Note on sample size: We received 3,622 votes and 370 longform responses.

A San Francisco resident named Barna is living in a real-life If You Give a Mouse a Cookie scenario – and it all started when he began feeding a stray black-and-white cat in his backyard.

🏠 Make yourself at home... Barna fed the stray tuxedo cat, who he lovingly named Domino, until he realized the feline would need somewhere to shelter in the inevitable winter rainstorms to come. 

• With woodworking as one of his favorite pasttimes, Barna built Domino an adorable little condo (left👆) complete with a heating pad, pillows, a light, and a camera.
• The condo was an immediate hit; more cats even started to hang out nearby. Barna took it one step further and build a second two-story house for the other cats; his yard is now a safe haven for five internet-famous kitties.

❓ Trivia: In which country was Keanu Reeves born?

👂 True or False?... Ears produce more earwax when you’re scared.

🤔 Riddle Me This… I am something people celebrate and resist. I change people’s thoughts and lives. I am obvious to some people but, to others, I am a mystery. What am I?

👆 Check out the referral prizes you can get, just for introducing people you know to little old us. 

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❓ Trivia: Lebanon

👂 T/F: True

🤔 Riddle: Age