Landmark Antitrust Trial Sees US Challenge Google

Landmark Antitrust Trial Sees US Challenge Google

Over ten weeks of⁢ testimony involving more than hundred witnesses, Google will try to persuade a federal judge that the landmark case brought by the​ US Department​ of Justice is without merit
AFP

Google faces its biggest ever legal challenge in a Washington court on Tuesday, ⁣as‌ it fends ‌off accusations from the US government that it acted unlawfully to build ⁣its overwhelming dominance ​of online search.

Over ten weeks of testimony involving more than‍ 100 witnesses, Google will try​ to persuade a federal judge that the landmark case brought‍ by the​ Department of Justice is without ‌merit.

The trial is the biggest US antitrust case against a big​ tech company since ​the same department took on Microsoft ​more than two⁢ decades⁢ ago over ⁢the⁢ dominance of its Windows‌ operating system.

“Technology has progressed a lot in 20 years so‌ what results from‌ this⁣ case will have a strong bearing on how‌ tech platforms operate in the future,” said John Lopatka, from Penn State’s School of ⁢Law.

The Google case​ centers on⁣ the government’s contention that it illegally‌ forged its domination of online search⁢ by entering‍ into​ exclusive contracts with device ⁢makers,⁤ mobile operators and ‌other companies that ⁢left rivals no chance to compete.

Through these payments of ⁤billions of dollars every year to Apple, Samsung or carriers like T-Mobile or AT&T, ⁤Google secured its search engine default ‌status on phones and web browsers and allegedly guaranteed its success to the ⁢detriment of ⁢competitors.

“Two‍ decades ago, Google became the darling of Silicon Valley as a scrappy start-up with‌ an innovative way to search the ⁤emerging ⁣internet,” the Justice Department said ​in its ⁣lawsuit. “That Google ⁢is long gone.”

The biggest alleged victims in the case are rival search engines that have yet to scratch out a meaningful market share against Google, like Microsoft’s Bing and DuckDuckGo.

Google​ remains the world’s ⁢preeminent search engine, capturing 90 percent ⁢of‌ the market in the United States and across the globe, much of which ‌comes through mobile usage on iPhones and phones running⁣ on Google-owned Android.

In its defense the company contends that its success⁣ is due to ⁣the unbeatable quality of its search ⁢engine that has‌ been judged a cut above the rest since its launch in 1998 ⁤by founders Sergei ⁢Brin and Larry Page.

“In sum, people don’t use Google because they have to –​ they use ​it because they want to,” said Kent Walker, Google president of global affairs in a blog post.

The trial will‌ be presided over and ⁢decided by​ Judge Amit ⁣P. Mehta, whose ruling would come many months ​after the roughly three months of hearings.

The stakes for Google are enormous if Mehta ‍upholds any⁤ or all of the US government’s arguments.

Remedial action could⁢ involve a break up of⁢ Google’s far flung business or an order to revamp the way it operates.

The company has faced major legal action in Europe, where it was fined more than 8.2 billion euros ($8.8 billion) for various antitrust violations, although those decisions ⁣are under appeal.

Whatever Mehta ends⁣ up deciding, the US case will almost certainly be appealed by either side, potentially dragging the case on for years.

Launched in 1998, Washington’s ‍case against Microsoft ended in a settlement in 2001 after an appeal reversed an order that the company be ​split up.

The US government ⁣launched its‌ case against Google during ‌the Trump administration and the suit​ carried over in the transition to President Joe Biden.

Biden has also made ⁢a point of challenging tech giants, but with little to ​show for it.

In January,‌ Biden’s Department of Justice launched a separate case against Google involving ⁤its advertising business and ‍this could go ⁣to trial next year.

The company also​ faces other lawsuits from⁢ US‌ states ⁢that accuse​ it of abusing ⁤monopolies in ad tech and for blocking competition in its Google ⁤Play app store.

Google and the‌ states said on Tuesday that they had reached an agreement in principle​ to ‌settle the Google Play case.

Google
Antitrust law
Department of justice

2023-09-12 06:00:03
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