Reshaping Tech Power: An Overview of the US v. Google Antitrust Trial
Since paying for default status in 2005, Google has overpowered the tech industry as the search engine of choice for internet users. The company has amassed 90 percent of the search engine market in the United States, and 91 percent worldwide. Google’s dominance has given rise to major lawsuits from the US government over the past three years, which centers on their alleged market manipulation to uphold their status.
The 10-week trial, U.S. et al. v. Google, which started on Sept. 12, seeks to prove Google as an unlawful monopoly. The U.S. Department of Justice (DOJ) argued that Google’s monopoly was maintained by anticompetitive and exclusionary practices, making it difficult for consumers to use other similar search engines. In an effort to ensure fair competition, the DOJ is more than ready to settle this case with the potential to reshape tech power.
For years, rivals have accused Google for suppressing their links to travel sites, restaurant reviews, and maps to give preference to Google’s content. The anticompetitiveness of Google is illustrated by patterns in acquiring competitors to obtain control on digital advertising, forcing them to adopt Google’s tools, and manipulating auctions to halt the rise of rival technologies.
The case is particularly centered on the claim that Google has paid Apple and other major tech platforms to be the default search engine on iPhones and other devices — a move that weakens competitors and prevents smaller companies from developing their own search products. More specifically, Google paid $26.3 billion in 2021 to defend their default status, with around $18 billion of that paid to Apple.
In the search engine’s defense, Google’s CEO Sundar Pichai states that there was added value in being the default search engine, with increases in search usage and revenue benefitting Apple, Google, and all of their shareholders. In terms of fizzling out competition, Google’s lawyers took a stand, arguing that rivals have still been able to win contracts, and that they ended up falling short due to the poorer quality of their services.
Additionally, the core of Google’s defense revolves around them bringing more gains than losses for consumers as the default search engine. Their investments have been focused on research and development, allowing the technology industry to thrive and bring the best services to consumers. They claim to have set the pace for tech advancements. According to Google’s head of search Prabhakar Raghavan, “It would be foolish of us to not put our best foot forward.”
The DOJ has also accused Google of raising ad prices for the sole purpose of earning high revenue, to which Google responded that they balance their pursuit of revenue by ensuring users only see high-quality ads from their search results.
Overall, Google’s major defense amidst the trial was an acknowledgement of why their search engine is most beneficial when defaulted to. Google’s lawyer John Schmidtlein reiterated that Google is most popular because of its quality, referencing the case of Samsung Fascinate, a smartphone poorly reviewed for using Microsoft’s Bing as its default search engine.
In the words of Kent Walker, Google’s president of global affairs, the company’s success “comes down to the quality of [its] products.” He also expresses frustration with the fact that the case could stunt promoting growth in tech innovation.
So far, the DOJ and Google have deposed more than 150 people for the case, producing over five million pages of documents. While a conclusion from Judge Amit Mehta of the U.S. District Court for the District of Columbia is still set to come in 2024, the DOJ has officially concluded the evidentiary phase of the trial on Thursday, Nov. 16.
There is no doubt the results of the ongoing case will have industry-wide impacts, especially if Google is proven to have broken antitrust laws. If found guilty, the DOJ would have to take action in undoing the harm caused, and ensure Google’s compliance with the law in the years to come. Whether it be banning Google from paying Apple and other tech companies to be the default search engine, or requesting the company to share key data on search trends, the future of tech power for all search engines and Google’s main rivals is bound to transform.