Antitrust case of the century: What to expect as DOJ v. Google begins
Google Faces Antitrust Trial: Will the Search Engine’s Monopoly Be Challenged?
Next week, Google will go head-to-head with the Department of Justice’s Antitrust Division in a trial that could have far-reaching implications for the internet and the modern economy. The trial will determine whether Google truly holds a monopoly on the search engine industry and whether it will ever face a competitor capable of dethroning it.
The Stakes Are High
This high-profile trial will feature testimony from prominent tech leaders, including Google CEO Sundar Pichai and Apple CEO Tim Cook. Over the course of three years, more than 150 people have been deposed, and over five million documents have been produced. Now, Google and the DOJ will battle it out in court for nine weeks to determine whether Google has unlawfully created a monopoly.
This trial comes at a time when the tech industry is under increased scrutiny from the government. Members of Congress from both parties are concerned about the influence wielded by major corporations like Meta, Apple, Amazon, and Google on politics and society.
“Google is a Goliath,” says Anat Alon-Beck, a professor of business law at Case Western Reserve University. “And to me, there really is no David. There’s no competition for Google in the United States or the world right now.”
The Trial
The DOJ’s lawsuit, initially filed in 2020 with the support of 35 states, alleges that Google’s market dominance is harming its competitors. Although the lawsuit was filed during the Trump administration’s crackdown on Big Tech, it has continued under the Biden administration.
The focus of the case will be on whether Google used its agreements with mobile phone developers and web browsers, totaling $45 billion, to create illegal monopolies by excluding competitors. Additionally, the trial will examine whether Google’s advertising practices lack transparency and are anti-competitive.
Originally, the suit included more charges, such as Google favoring its own products in search results. However, Judge Amit Mehta, appointed by Barack Obama, trimmed back the charges in August. Mehta acknowledged that Google’s brand name has become so ubiquitous that dictionaries recognize it as a verb.
Google’s market share of search results is estimated to be between 90 and 94%, and the company made approximately $224.47 billion in advertising revenue in 2022.
Mehta’s previous rulings on technology companies and antitrust policy make it difficult to predict how he will rule on this case. However, his blocking of a $3.5 billion Sysco deal for US Foods in 2015 on antitrust grounds suggests he takes a cautious approach.
Google’s Arguments
Google argues that its deals to have Google search as the default on devices and browsers are a result of competition, not an attempt to stifle it. They point to statements from Apple CEO Tim Cook, who praised Google’s search engine as the best and explained why it was chosen as the default.
“People don’t use Google because they have to, they use it because they want to,” says Google President of Global Affairs Kent Walker. “It’s easy to switch your default search engine — we’re long past the era of dial-up internet and CD-ROMs.” Walker is eager to prove Google’s case in court.
Google also argues that it competes not only with other search engines like Bing and Yahoo but also with other service providers like Amazon and Yelp. They claim to have a multitude of competitors, including one of the world’s largest retail giants. The DOJ, on the other hand, argues that the relevant competition is limited to user search experience in services like Bing or Yahoo.
The trial will also examine Google’s search advertising practices. The DOJ alleges that Google lacks transparency, making it difficult for competitors to offer comparative pricing.
Google has attempted to have the head of the DOJ’s Antitrust Division, Jonathan Kanter, recuse himself due to perceived bias. Kanter, along with other Biden-appointed leaders, has taken a more aggressive approach to antitrust policy regarding technology companies. Google points out that Kanter previously represented Yelp, which they consider a competitor.
The DOJ’s Antitrust Division declined to comment on the matter.
DOJ vs. Tech Industry
Google’s deals to make its search engine the default on other companies’ devices and web browsers could be the key to determining whether it is declared a monopoly, based on the DOJ’s previous antitrust case against a tech giant.
In 1998, the DOJ sued Microsoft for bundling its web browser, Internet Explorer, with its Windows operating systems. The DOJ alleged that Microsoft abused its monopoly power by giving itself an advantage over other browser developers. The judge ruled in favor of the DOJ, stating that Microsoft was crushing competition through its monopolistic control. However, this ruling was later overturned due to the judge’s breach of conduct.
A similar breakup of Google may not be feasible in the digital economy. Critics argue that holding Big Tech companies accountable for antitrust violations is necessary to ensure innovation and competition.
If the government wins, it could lead to immense innovation and the entry of new competitors, according to Matt Stoller, director of research at the American Economic Liberties Project.
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