US Justice Department accuses Google of search monopoly in landmark case starting Tuesday
The trial for a landmark antitrust case against Google is set to begin on Tuesday in a Washington district court. The case, initiated by the US Justice Department in 2020, marks a significant legal challenge to the dominance of big tech companies, potentially shaping the future of the industry’s monopolies. Katherine Van Dyck, Senior Counsel at the American Economic Liberties Project, emphasized the case’s significance, stating that the outcome will impact how millions of Americans access and utilize the internet.
The Justice Department has alleged that Google utilized its market dominance to unfairly exclude competitors and establish itself as a gatekeeper of the internet. This case represents the first trial initiated by the government against Google. Additionally, the Justice Department has joined a separate case, alongside attorneys general from 38 states and territories, addressing monopoly concerns in the advertising industry.
Google has denied any wrongdoing in both cases and has not yet responded to requests for comment. Similarly, the Justice Department has not provided an immediate comment.
In recent filings, Judge Amit P. Mehta eliminated several charges against Google, narrowing the scope of the case in a minor victory for the company. He ruled that Google was not obliged to defend against accusations that its search results page design harmed competitors such as Expedia or Yelp.
Nonetheless, Judge Mehta allowed some of the more substantial allegations to proceed, including critical claims that Google’s exclusive agreements with phone manufacturers may have harmed competitors. The Justice Department contends that Google pays billions each year to secure default status for its general search engine and, in many instances, to explicitly prevent its counterparties from engaging with Google’s competitors.
In an opinion unsealed in August, Judge Mehta noted that Google’s brand name has become so widespread that it is recognized as a verb in dictionaries. He also pointed out that in 2020, Google held nearly 90% of market share, with advertisers spending over $80 billion annually to target general search users.
Judge Mehta stated, “A company with monopoly power engages in unlawful conduct only when its actions suppress competition.”
The judge emphasized that the Justice Department must demonstrate that each specific action, such as how Google manages search advertising, constitutes a violation of antitrust law. Consequently, the government cannot present a series of actions and assert that, when combined, they collectively constitute a breach of antitrust law.
We anticipate demonstrating in court that the promotion and distribution of our services is both lawful and supportive of competition,” responded Kent Walker, Google’s Chief Legal Officer, to Mehta’s ruling.
Although big tech companies have experienced significant success over the past few decades, lawsuits like those against Google may signify a shift in the regulatory landscape. Earlier this year, attorneys general filed an antitrust lawsuit against Meta, which was subsequently dismissed. Additionally, under the leadership of Lina Khan, the Federal Trade Commission filed a lawsuit against Amazon earlier this year.
