{"id":9731,"date":"2023-09-10T15:34:48","date_gmt":"2023-09-10T15:34:48","guid":{"rendered":"https:\/\/prosfunds.com\/business\/googles-antitrust-showdown-whats-at-stake-for-the-internet-search-titan\/"},"modified":"2023-09-10T15:34:48","modified_gmt":"2023-09-10T15:34:48","slug":"googles-antitrust-showdown-whats-at-stake-for-the-internet-search-titan","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=9731","title":{"rendered":"Google\u2019s antitrust showdown: What\u2019s at stake for the internet search titan"},"content":{"rendered":"
\n

\n Google will face off in court Tuesday against government officials who have accused the company of antitrust violations in its massive search business, kicking off a long-anticipated legal showdown that could reshape one of the internet\u2019s most dominant platforms.\n <\/p>\n

\n The trial beginning this week in Washington before a federal judge marks the culmination of two ongoing lawsuits against Google that started during the Trump administration. Legal experts describe the actions as the country\u2019s biggest monopolization case since the US government took on Microsoft in the 1990s.\n <\/p>\n

\n In separate complaints, the Justice Department and dozens of states accused Google in 2020 of abusing its dominance in online search by allegedly harming competition through deals with wireless carriers and smartphone makers that made Google Search the default or exclusive option on products used by millions of consumers. The complaints eventually consolidated into a single case.\n <\/p>\n

\n Google has maintained that it competes on the merits and that consumers prefer its tools because they are the best, not because it has moved to illegally restrict competition. Google\u2019s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google\u2019s parent company, Alphabet, recorded in 2022. Search has fueled the company\u2019s growth to a more than $1.7 trillion market capitalization.\n <\/p>\n

\n Now, the company is set to defend itself in a multiweek trial that could upend the way Google distributes its search engine to users. The case is expected to feature testimony from high-profile witnesses including former employees of Google and Samsung, along with executives from Apple, including senior vice president Eddy Cue. It is the first case to go to trial in a series of court challenges targeting Google\u2019s far-reaching economic power, testing the willingness of courts to clamp down on large tech platforms.\n <\/p>\n

\n \u201cThis is a backwards-looking case at a time of unprecedented innovation,\u201d said Google President of Global Affairs Kent Walker, \u201cincluding breakthroughs in AI, new apps and new services, all of which are creating more competition and more options for people than ever before. People don\u2019t use Google because they have to \u2014 they use it because they want to. It\u2019s easy to switch your default search engine \u2014 we\u2019re long past the era of dial-up internet and CD-ROMs.\u201d\n <\/p>\n

\n The trial may also be a bellwether for the more assertive antitrust agenda of the Biden administration.\n <\/p>\n

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\n <\/source><\/source><\/source><\/picture>\n <\/div>\n<\/div>\n

\n In its initial complaint, the US government alleged in part that Google pays billions of dollars a year to device manufacturers including Apple, LG, Motorola and Samsung \u2014 and browser developers like Mozilla and Opera \u2014 to be their default search engine and in many cases to prohibit them from dealing with Google\u2019s competitors.\n <\/p>\n

\n As a result, the complaint alleges, \u201cGoogle effectively owns or controls search distribution channels accounting for roughly 80 percent of the general search queries in the United States.\u201d\n <\/p>\n

\n The lawsuit also alleges that Google\u2019s Android operating system deals with device makers are anticompetitive, because they require smartphone companies to pre-install other Google-owned apps, such as Gmail, Chrome or Maps.\n <\/p>\n

\n At the time the lawsuit was first filed, US antitrust officials did not rule out the possibility of a Google breakup, warning that Google\u2019s behavior could threaten future innovation or the rise of a Google successor.\n <\/p>\n

\n Separately, a group of states, led by Colorado, made additional allegations against Google, claiming that the way Google structures its search results page harms competition by prioritizing the company\u2019s own apps and services over web pages, links, reviews and content from other third-party sites.\n <\/p>\n

\n But the judge overseeing the case, Judge Amit Mehta in the US District Court for the District of Columbia, tossed out those claims in a ruling last month, narrowing the scope of allegations Google must defend and saying the states had not done enough to show a trial was necessary to determine whether Google\u2019s search results rankings were anticompetitive.\n <\/p>\n

\n Despite that ruling, the trial represents the US government\u2019s furthest progress in challenging Google to date. Mehta has said Google\u2019s pole position among search engines on browsers and smartphones \u201cis a hotly disputed issue\u201d and that the trial will determine \u201cwhether, as a matter of actual market reality, Google\u2019s position as the default search engine across multiple browsers is a form of exclusionary Conduct.\u201d\n <\/p>\n

\n In January, meanwhile, the Biden administration launched another antitrust suit against Google in opposition to the company\u2019s advertising technology business, accusing it of maintaining an illegal monopoly. That case remains in its early stages at the US District Court for the Eastern District of Virginia.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Google will face off in court Tuesday against government officials who have accused the company of antitrust violations in its massive search business, kicking off a long-anticipated legal showdown that could reshape one of the internet\u2019s most dominant platforms. 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