The United States sues Google and officially brings the largest antitrust lawsuit in twenty years to court!
The U.S. Department of Justice has accused Google of spending over $10 billion a year and signing exclusive agreements with companies like Apple to maintain its position as the default search engine on the internet and mobile devices. Google's lawyers argue that Google has become the top search engine because users prefer it over its competitors. Companies choose Google as the default search engine because it is the best choice, not because of a lack of competition.
For more than two decades, the largest antitrust case in the technology industry has begun, and Google is facing its biggest legal threat since its inception.
On Tuesday, September 12th, Eastern Time, the US government's civil lawsuit against Google for monopolizing the search and search advertising industry began in Washington. Kenneth Dintzer, an attorney for the Department of Justice, accused Google of spending over $10 billion a year to maintain its position as the default search engine for the internet and mobile devices, thereby stifling market competition.
Dintzer stated that Google has held a monopoly position since at least 2010 and now controls over 89% of the internet search market. Over the past twelve years, Google has abused its monopoly position in the general search field. Google has used exclusive agreements for default search as a weapon to block competitors and has sought to outperform Google in computer, mobile, and other device searches by organizing Apple, thereby exerting its power in the search market.
Lawyers believe that this case is about the future of the internet and whether Google's search engine will face substantial competition. Evidence will prove that Google has required exclusive agreements regarding default search engines to prevent competitors from competing in the search field.
Google's representative lawyer, John Schmidtlein, argued that Google became the top search engine because users prefer Google over its competitors. Companies choose Google as the default search engine because it is the best choice, not because of a lack of competition. Consumers use Google because Google provides value to them, not because they already possess value. Moreover, today's users have more search options and ways to access information online.
Schmidtlein stated that Apple and Mozilla, the developer of the Firefox browser, have long chosen Google as the default search engine in exchange for a share of search-related revenue, which has contributed to innovation. Google has won the competition based on its own merits. In addition to the default search engine, there are many other ways for users to access the internet, and they have always been using those methods.
In 2020, the Department of Justice, along with 52 states and jurisdictions, filed a joint lawsuit against Google, accusing the company of paying billions of dollars to technology peers, smartphone manufacturers, and wireless service providers in exchange for setting Google search as the default choice for phones and web browsers. If these partners choose to receive a share of the search revenue from Google, they cannot pre-install or promote competing search engines.
After the trial begins on Tuesday, the case will continue for ten weeks. The Department of Justice has one month to present the case, which means that the states and Google will not question witnesses until October.
The witness testimony phase is expected to conclude in November, after which both the plaintiffs and defendants will submit case summaries to the judge and present their arguments regarding the judge's decision. The closing arguments and final judgment are expected to be delivered next year.
If Google is found to have violated antitrust laws, Judge Amit Mehta, who is presiding over this case, will schedule a separate trial to determine the punishment for Google. Google is likely to appeal. Therefore, the media believes that it may take several more years for this lawsuit to reach a final resolution. If Google loses the lawsuit, in theory, Mehta can order the breakup of Google. However, legal analysts believe that this possibility is unlikely. It is more likely to impose new restrictions on Google's business operations, such as limiting Google's ability to become the default search engine for devices by paying fees to companies like Apple and Samsung. It is not possible for a judge to demand the breakup of Google simply because it illegally pays device manufacturers.