Google’s dominant search engine faces a formidable challenge as federal regulators launch an antitrust trial aimed at dismantling its internet empire. This trial, which is the largest in the U.S. in 25 years, will span 10 weeks as federal lawyers and state attorneys general attempt to prove that Google manipulated the market by making its search engine the default choice on numerous devices and platforms. U.S. District Judge Amit Mehta is not expected to deliver a ruling until early next year. If Google is found to have violated the law, another trial will determine the necessary actions to rein in the California-based company.
Key figures from Google, including Alphabet CEO Sundar Pichai, are anticipated to give testimony during the trial. Court documents suggest that Eddy Cue, a senior executive at Apple, may also be called to the stand.
The Justice Department filed its antitrust lawsuit against Google almost three years ago, alleging that the company exploited its dominance in internet search to gain an unfair advantage over competitors. Government lawyers claim that Google secures its position through a form of payola, paying billions of dollars each year to be the default search engine on the iPhone and web browsers like Safari and Firefox.
Government alleges market rigging in Google’s favor
Regulators also accuse Google of illegally rigging the market by requiring its search engine to be bundled with its Android software for smartphones, thereby controlling access to the Android app store. Google asserts that it faces significant competition despite its 90% market share in internet search. The company argues that search engines such as Bing and platforms like Amazon and Yelp provide alternatives for users seeking information.
According to Google, its continuous enhancements to the search engine have cultivated a loyal user base and established “Googling” as a synonymous term for online searches.
25 years ago today
The trial coincides with the 25th anniversary of Google’s first investment—a $100,000 check from Sun Microsystems co-founder Andy Bechtolsheim that enabled Larry Page and Sergey Brin to start the company in a garage in Silicon Valley. Today, Google’s parent company, Alphabet, is valued at $1.7 trillion and employs 182,000 people. The bulk of its revenue comes from $224 billion in annual ad sales generated through its search engine, which handles billions of queries daily.
The antitrust case brought against Google mirrors the one filed against Microsoft in 1998, in which regulators accused the tech giant of forcing computer manufacturers to feature its Internet Explorer browser alongside its Windows operating system. This bundling practice stifled competition from Netscape, a once-popular browser.
Several members of the Justice Department’s team involved in the Google case, including lead litigator Kenneth Dintzer, were also part of the Microsoft investigation.
If the trial results in concessions that diminish Google’s power, the company could face significant setbacks. For instance, it may be required to stop paying Apple and other companies to make Google the default search engine on devices. Alternatively, the legal battle could cause Google to lose focus, a fate experienced by Microsoft following its antitrust dispute with the Justice Department. Distracted, Microsoft struggled to adapt to the rise of internet search and smartphones, allowing Google to emerge as a dominant force.
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