The Justice Department and 38 states and territories on Tuesday accused Google of engaging in monopolistic practices in online search, as the high-stakes antitrust trial against the tech giant began. In the packed courtroom, the government alleged that Google used its deep pockets and dominant position in the market to pay $10 billion a year to Apple and other companies in order to be the default search provider on smartphones. The government argued that these agreements were designed to exclude competitors and solidify Google’s search engine dominance.
Google, in response, denied the allegations of illegal behavior and claimed that it simply offered a superior product. The company stated that users have numerous search options and highlighted alternative platforms such as Amazon for shopping, TikTok for entertainment, and Expedia for travel. Google also emphasized that internet search encompasses more than just its general search engine.
The trial, known as U.S. et al. v. Google, marks the first major monopoly case since the Microsoft trial over two decades ago. The outcome of this trial could have far-reaching consequences not only for Google, but for other large tech companies as well. Over the course of the next 10 weeks, both the government and Google will present arguments and call witnesses to delve into Google’s rise to power and whether it engaged in anticompetitive practices to maintain its dominance.
If the government wins the case, it could lead to limits on Google’s business practices and send a message to other tech giants. Winning the trial could also raise questions about the effectiveness of existing antitrust laws and embolden Silicon Valley. On the other hand, a Google victory may bolster arguments against aggressive government regulation.
The outcome of the trial could have significant implications for the tech industry, which is currently focused on the race for artificial intelligence. Judge Amit P. Mehta of the U.S. District Court of the District of Columbia will determine the final ruling.
This case is part of a broader effort by the Biden administration and states to rein in the power of big tech companies. The Justice Department has already filed a second lawsuit against Google over its advertising technology, with a potential trial next year. Additionally, the Federal Trade Commission is moving towards a trial in an antitrust lawsuit against Meta, while investigations against Amazon and Apple remain open.
The case centers around the agreements Google made with browser developers, smartphone manufacturers, and wireless carriers to be the default search engine on their platforms. The trial began with the government presenting internal documents that outlined how Google used these agreements to secure default placement and limit competition. Google, however, argued that these agreements did not lock up the market, as there were alternative search engines available and users could easily switch.
The trial saw both sides presenting their arguments, with the government claiming that Google intentionally hid documents from antitrust enforcers and asserting that Google’s control over defaults demonstrated its power as a monopolist. Google countered by stating that the government’s evidence was based on out-of-context emails and that the company faced competition from a wider range of platforms beyond general search engines.
In the afternoon session, the Justice Department called Google’s chief economist, Hal Varian, as its first witness. Varian testified about Google’s awareness of its market power and attempts to avoid antitrust scrutiny. The government presented emails and memos from as early as the early 2000s to establish its case. Varian’s testimony is scheduled to continue on Wednesday.
