Google faced a judge’s questioning as it asked the U.S. District Court to dismiss the antitrust lawsuit filed against it by the Department of Justice (DOJ). The DOJ argued that the tech giant broke antitrust law by using its dominant position in the search engine market to strike deals with smartphone makers, carriers, and browsers be the default search for their customers. The government believes these deals are illegal and give Google an unfair advantage over its competitors.
The Case Against Google
The DOJ filed an antitrust lawsuit against Google in 2020, alleging that the company illegally used its market power to limp rivals. The suit is the biggest challenge to Big Tech’s power and influence since the executive department sued Microsoft Corp in 1998. The lawsuit claims that Google pays billions of dollars each year to smartphone makers, carriers, and browsers to be the default search engine on their devices, giving Google an unfair advantage over its competitors.
The DOJ also argued that Google’s dominance in the search engine market had led to lost innovation, with the rise of ChatGPT cited as an example. The DOJ believes that Google’s market share is so large that it cannot legally make the same deals as a less powerful search engine company and that it should not have made agreements with Apple to require Google to be the default search engine.
Google’s Defense
Google argued that the payments are legal revenue-sharing deals and not illegal efforts to limit rivals. The tech giant’s lawyer, John Schmidtlein, argued that offering a superior product and winning business on the merits is never unlawful. Schmidtlein also said that the goal of paying to be the default search engine was to expose users to Google’s products and make it easier for them and that there was nothing wrong or nefarious about that.
The judge, Amit Mehta, actively questioned Google’s lawyer during the hearing. Mehta asked if dominance in search means that Google’s search engine will upgrade faster than its rivals and if the deals gave the company an anti-competitive advantage. Mehta also asked Schmidtlein why the tech giant paid to be the devices’ default search engine.
The Future of the Case
The decision on summary judgment will be made by Mehta, and the case is slated for trial in September. Google’s motion is the latest attempt by the company to end time-consuming and expensive lawsuits from state and federal governments inclined to curb its market power.
Since the DOJ filed the antitrust lawsuit against Google, the tech giant has been hit with other antitrust complaints. The DOJ filed a second lawsuit in January, accusing the company of abuse in its dominance of the digital advertising business. An ad tech lawsuit was filed in 2020 by a group of states led by Texas, while states led by Utah filed a lawsuit in 2021, saying the company broke antitrust law in handling its play store.
Wrap-Up: Far-Reaching Implications for Big Techusion
Google’s antitrust lawsuit has been a long time coming, and it has the potential to significantly impact the tech giant’s dominance in the search engine market. Mehta will decide on summary judgment, and the case is slated for trial in September. Whatever the outcome of the case, it will be closely watched by the tech industry and could have far-reaching implications for the power and influence of Big Tech.
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