Google’s Search Exceptionality Tested: The Largest Antitrust Trial of the Decades Causes Ripples

WASHINGTON (AP) — Google faces a major antitrust trial in the United States, starting Tuesday, as federal regulators attempt to dismantle its internet empire and address concerns about the company’s dominant search engine.

Over the next 10 weeks, federal lawyers and state attorneys general will present their case, aiming to prove that Google rigged the market in its favor by making its search engine the default choice on various platforms and devices. The ruling from U.S. District Judge Amit Mehta is not expected until early next year. If Google is found to have violated antitrust laws, another trial will determine the appropriate actions to rein in the company based in Mountain View, California.

Testimony is expected from top executives at Google and its parent company Alphabet Inc., as well as representatives from other powerful technology firms. Alphabet CEO Sundar Pichai, who succeeded Google co-founder Larry Page four years ago, is likely to take the stand. Court documents also suggest that Eddy Cue, a high-ranking executive from Apple, may be called to testify.

The antitrust lawsuit against Google was filed by the Justice Department nearly three years ago during the Trump administration. The lawsuit alleges that Google has used its dominance in internet search to gain an unfair advantage over its competitors. Government lawyers claim that the company engages in payola by spending billions of dollars annually to secure its position as the default search engine on the iPhone and other web browsers.

Regulators also accuse Google of illegally manipulating the market in its favor by requiring device manufacturers to bundle its search engine with its Android software for smartphones in order to gain full access to the Android app store.

Google argues that it faces significant competition despite its 90% market share in internet search. The company claims that rivals such as Microsoft’s Bing and websites like Amazon and Yelp provide alternative options for consumers to seek information and make inquiries.

Google attributes its continued success to continuous improvements in its search engine, which have ingrained the habit of using “Google” as a verb for searching the internet.

The trial commences just weeks after Google celebrated its 25th anniversary, marking the first investment in the company by Sun Microsystems co-founder Andy Bechtolsheim. The company has since grown into a corporate powerhouse, with Alphabet now valued at $1.7 trillion and employing 182,000 people. The majority of Alphabet’s revenue comes from the $224 billion generated through ad sales driven by Google’s search engine, which handles billions of queries daily.

The Justice Department’s antitrust case against Google draws comparisons to its case against Microsoft in 1998. Back then, regulators accused Microsoft of leveraging its dominant Windows operating system to promote Microsoft’s Internet Explorer, ultimately crushing competition from Netscape, which was popular at the time.

If the trial ends with concessions that weaken Google’s power, it could have significant implications for the company. For instance, Google may be forced to cease its practice of paying Apple and other companies to make Google the default search engine on smartphones and computers. Alternatively, the legal battle could divert Google’s attention and hinder its ability to adapt to emerging technologies, akin to what happened to Microsoft after its antitrust battle.