The highly anticipated antitrust trial between the US government and Google began earlier this week in a Washington courtroom. This landmark case challenges the dominance of Google’s world-renowned search engine and its alleged anti-competitive practices.
The Justice Department lawyer, Kenneth Dintzer, emphasized the significance of the case, stating, “This case is about the future of the internet and whether Google will ever face meaningful competition in search.” Over the next 10 weeks, more than 100 witnesses will be called to testify, as Google aims to convince Judge Amit P Mehta that the Department of Justice’s case has no merit.
This trial marks the largest antitrust case against a big tech company in the US since the historic Microsoft case over two decades ago. Judge Mehta humorously noted the courtroom’s high concentration of blue suits, referring to the dozens of lawyers present for the trial.
The crux of the case revolves around the government’s claim that Google gained its search engine dominance through unfair exclusivity contracts with device manufacturers, mobile operators, and other companies. These contracts allegedly prevented any chance of competition, giving Google an unfair advantage.
Dintzer revealed that Google pays approximately $10 billion per year to secure its search engine’s default status on phones and web browsers, effectively suppressing competition. This strategy created a “feedback loop,” where Google’s search dominance continued to grow due to its exclusive access to user data that competitors couldn’t match.
Google’s parent company, Alphabet, has become one of the wealthiest companies globally, thanks to search ads accounting for nearly 60% of its revenue. This revenue greatly surpasses income from other activities, such as YouTube or Android phones.
“We will track what Google did to maintain its monopoly… It’s not about what it could have done or should have done; it’s about what they did,” stated Dintzer before the court.
Google vehemently rejected the government’s case, arguing that its search engine’s success is a result of continuous innovation and significant investments over the years. John Schmidtlein, Google’s lawyer, emphasized that the court should not interfere with the market and prohibit Google from competing, as it goes against US antitrust law.
Schmidtlein further asserted that testimonies from Apple executives and others would demonstrate that Google earned its default status on the iPhone and Safari browser based on merit.
The main aggrieved parties in this case are competing search engines, such as Microsoft’s Bing and DuckDuckGo, which have struggled to gain a significant market share against Google.
Google remains the dominant search engine worldwide, capturing 90% of the US and global markets, with a substantial portion derived from mobile usage on iPhones and Android phones.
Judge Mehta’s ruling is expected months after the conclusion of the anticipated three-month trial. The ruling could dismiss the government’s arguments or impose drastic remedial actions, such as breaking up Google’s business or implementing operational reforms.
Regardless of the outcome, the ruling will likely be appealed by either side, potentially prolonging the case for years. A similar antitrust case against Microsoft in 1998 resulted in a settlement in 2001 after an appeal overturned the order to split the company.
The US government initiated its case against Google during the Trump administration, and it carried over into President Joe Biden’s tenure. President Biden has also expressed concerns about the power of tech giants and has nominated known tech critics for key positions. However, concrete actions are yet to materialize.
In addition to this ongoing trial, Biden’s Department of Justice has launched a separate case against Google, focusing on its advertising business. This case may proceed to trial next year. Google also faces multiple lawsuits from US states, accusing the company of monopolistic practices in ad tech and anti-competitive behavior in its Google Play app store.