February 27, 2024


Google Faces Landmark Antitrust Trial Over Search Dominance

In a courtroom showdown that could reshape the fate of one of the internet’s most influential giants, Google is set to face off against government officials who accuse the tech giant of antitrust violations in its massive search business.

This high-stakes trial, which began this week in Washington earlier this week, involves two lawsuits during the Trump administration.

Currently, this is the most significant monopolization case in the US since the government locked horns with Microsoft in the 1990s.

The accusations against Google were brought separately by the Justice Department and several states in 2020. Google has allegedly exploited its dominant position in online search through agreements with wireless carriers and smartphone manufacturers.

These deals made Google Search the default or exclusive search option for products that millions of consumers have been using. These allegations against Google have merged into a single case.

Google’s Stance Against The Widespread Allegations

Google, however, has vehemently defended its practices. It argued that it competes with other companies on merit and not by illegally restricting competition.

People don’t use Google because they have to — they use it because they want to.Kent Walker, Google’s President of Global Affairs

He emphasized that consumers choose Google’s tools because they are superior, not because of any kind of force. Interestingly, Google’s search business is a colossal revenue generator.

It contributes to more than 50% of the $76 billion in net income and $283 billion in revenue that its parent company, Alphabet, recorded in 2022. This business has been phenomenal in propelling the company’s market capitalization, worth more than $1.7 trillion.

What Does This Trial Mean For Google And Other Big Tech Companies?

This trial puts forward a challenge to Google, countering how it distributes its search engine to users. The courtroom is also expected to witness testimonies from prominent witnesses, including former Google and Samsung employees, as well as executives from Apple.

This is the first of several court challenges aimed to control the economic power of big tech giants. The trial would also demonstrate whether or not the court is willing to address these issues.

The complaint argues that “Google effectively owns or controls search distribution channels accounting for roughly 80 percent of the general search queries in the United States.”

The trial carries broader implications since it might show the more assertive stance of the Biden administration on antitrust matters.

The government alleged, in its initial complaint, that Google was paying billions to device manufacturers, including Motorola, Apple, LG, and Samsung, to integrate the Google Search engine into their devices by default.

In many instances, Google prevents these manufacturers from collaborating with its competitors.

The lawsuit also claims that Google’s agreement with device manufacturers about its Android OS is anticompetitive. This is why Android Systems come with pre-installed Google-owned apps such as Maps, Chrome, and Gmail.

Led by Colorado, a group of states further claimed that the structure of the search results page discourages competition. However, Judge Amit Mehta recently dismissed these claims.

Nevertheless, the trial marks significant progress for the U.S. government in its efforts to hold the search engine accountable.

Last January, the Biden administration initiated another antitrust suit against Google. This suit targets the advertising technology business of the company. The administration alleged that the search engine has an illegal monopoly.

This case is currently in its early stages. As it unfolds, it might reveal the government’s stand against antitrust concerns in the tech industry.



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