Google’s antitrust trial kicks off with gloves off

Google’s antitrust trial kicks off with gloves off

The⁤ most significant tech antitrust ⁣trial of the 21st century‌ thus far ‌kicked off in US federal court Tuesday with the Department of Justice and 14 co-plaintiff states squaring off ⁤against ⁤the ⁣search⁣ engine giant. The DOJ accuses Google of unlawfully monopolizing the markets​ for general search services, search advertising, and general search text advertising ​in the via anticompetitive and exclusionary practices.

During opening⁢ arguments, Kenneth Dintzer, deputy director in the DOJ’s civil⁤ division, said, “This ⁤case is ‌about the future of the internet, whether the Google search ​engine will ever face meaningful competition to protect‍ that future.”​ At the‌ heart of the government’s case is Google’s‌ use of⁣ contracts to maintain what Dintzer contends⁤ is a “default status” market share that tops‌ 89% in the search engine market and 74% in⁤ the‌ search ads business.

“Monopoly maintenance starts with default settings that we ⁣find when we open ‍the apps and download the browsers,” Dintzer said. ‍”With these defaults, Google controls search distribution and gets more searches‍ than its rivals. It⁣ is ‌uncontested that Google gets sixteen times the fresh data⁤ than its nearest rival,⁣ Bing.”

Insurmountable feedback loop for ‍rivals

The DOJ says that ⁣with its massive lead in fresh data, Google can provide users with ⁢more accurate results and, in turn, attract more users and advertising ⁢revenue, creating an ‍insurmountable feedback loop for ⁤its rivals. ‌”With this data, Google’s mobile search and⁢ ad products‍ are better than its rivals ​can hope‍ to ⁢be,” giving Google more money to pay for more default contracts with ⁢device makers and apps rather than investing in products, Dintzer⁢ argued

Google’s dominance not only forecloses competitors but also reduces innovation, Dintzer said, affecting the ⁢quality of results and allowing​ Google to neglect issues ‌important​ to users, ⁣such as privacy. “Privacy ​is enormously important⁤ to some people. Without competition, Google refuses to⁣ offer⁣ credible protection.” Dintzer ‌said the government will provide “direct evidence that Google refuses to offer more privacy because ⁤they’re not facing credible competition.”

On the ⁣advertising⁢ side, Dintzer ‌said the government will prove that Google contracts have denied the distribution of potential rivals,⁤ affecting every phone and computer in the country, expressly targeting a potential entrant called Branch Metrics, and limiting Apple’s ability⁤ to innovate. When asked by Judge​ Amit Mehta how far back Google’s⁣ monopolization extends, ‍Dintzer said that the DOJ’s case addresses the company’s business‌ since 2010 when, even then, the company had a market share above ⁢70%.

Mehta is overseeing the case in a bench⁢ trial, in which there is no jury and the judge acts as fact-finder as well as arbiter of the law.

Google’s lock on‍ the advertising market

On behalf of the state of Colorado representing⁢ all the state plaintiffs, attorney William F. Cavanaugh, Jr. of Patterson, Belknap,…

2023-09-13 16:48:02
Original from www.computerworld.com rnrn

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