The upcoming trial between Google and the federal government has the potential to reshape the tech giant’s structure and the future of antitrust enforcement against tech platforms. This trial comes nearly three years after the Department of Justice (DOJ) and a coalition of states’ attorneys general filed a complaint alleging that Google holds an anticompetitive monopoly over the search market.
Google alleges DOJ antitrust head has ‘deep-seated bias’
This major antitrust lawsuit against a tech company is the first since the U.S. sued Microsoft in the late 90s. It serves as a critical test for dominant tech platforms amidst increasing bipartisan scrutiny.
“It’s the biggest monopolization case the United States has seen in a generation,” said Bill Baer, former assistant attorney general in charge of the DOJ antitrust division during the Obama administration.
Baer emphasized that the verdict of the Google trial will have far-reaching implications for other dominant firms that have risen to power over the past two decades.
“How do the rules of the road apply to these dominant firms? Even if they became dominant through legitimate behavior, are they staying dominant through misconduct that limits the opportunity of rivals to emerge and give consumers the benefit of a competitive marketplace?” Baer stated.
Why the DOJ says Google is harming consumers
The federal government claims that Google is harming consumers by obstructing innovation in online search tools and limiting choice.
The DOJ argues that Google has maintained an illegal monopoly over online search through exclusive agreements that preinstall its search application on devices. This alleged behavior allowed Google to become the dominant search engine, surpassing its rivals.
How the DOJ plans to face off with Google
Federal prosecutors are likely to assert that Google is hindering a free market of rivals who could offer search choices with superior technical perks and policy choices, such as faster search result presentations and more stringent data privacy practices.
Additionally, the DOJ might argue that Google could exploit its market power in artificial intelligence (AI) technology and suppress innovation.
Google denies allegations of anticompetitive behavior
Google strongly refutes the allegations of anticompetitive behavior by contending that its products and services are popular simply because they are better, not because Google has tilted the playing field against potential rivals.
“We’re proud that browser makers opt to show Google Search based on the quality of our products,” stated Google’s president of global affairs, Kent Walker, in a blog post on Friday.
Walker supported his statement by citing comments from Apple CEO Tim Cook, who referred to Google’s search engine as “the best” while defending the deal that made Google the default search option for Apple.
Google also maintains that its contracts to become default search engines on browsers are not exclusive and do not impede competition. The company argues that users can easily set a new default search engine, and its contracts do not restrict access to other search options.
“In short, our success comes down to the quality of our products, not the quantity of our contracts,” Walker concluded.
Google intends to call some of its customers, including executives from tech giants like Apple, to testify about their choice to use Google products and the agreements in question.
Furthermore, Google plans to highlight the innovations it has fostered, such as the transition from desktop to mobile, to improve search functionality for the mobile world.
Judge Amit Mehta has already narrowed the scope of claims that the government can focus on during the trial. In a decision last month, Mehta dismissed allegations that Google had weakened competition by favoring its own products in search results, thereby harming rival companies like Yelp or Expedia.
Walker hailed this decision as evidence that the government’s case is “deeply flawed.”
What are the next steps in the case?
The DOJ and the coalition of states are expected to spend several weeks presenting their case against Google before the company presents its defense.
The trial, lasting 10 weeks, will be divided into two phases: The first phase will determine whether the government successfully proves that Google is an illegal monopoly, while the second phase will address potential remedies.
Baer suggested that the government might propose breaking up Google or imposing restrictions on the types of agreements and payments the company can make to promote its search engine.
How the DOJ plans to limit Google’s influence could significantly impact the larger tech sector, according to experts.
“This is about opening up the ability to compete with Google on search,” said Katie Van Dyke, senior legal counsel at the American Economic Liberties Project, a nonprofit organization advocating for stronger antitrust enforcement.
The American Economic Liberties Project strongly supports the federal government’s case against Google and congressional proposals for broader antitrust reform.
While the Google search case approaches trial, a separate DOJ case targeting the company’s dominance in the ad tech market is also underway.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
