The impending trial in a landmark antitrust lawsuit against Google, set to commence this Tuesday in a Washington district court, represents a pivotal legal challenge to the dominion and influence wielded by major tech conglomerates in recent decades. This high-stakes legal battle, initiated by the U.S. Department of Justice back in 2020, could potentially serve as a harbinger in the ongoing struggle against monopolistic practices within the tech industry.
“The forthcoming Google search trial holds immense significance for our digital realm, as its outcome will profoundly shape how millions of Americans access and utilize the internet,” emphasized Katherine Van Dyck, a senior counsel at the American Economic Liberties Project. The nonprofit organization actively pushed for the public disclosure of court proceedings due to the case’s overarching importance.
At its core, the justice department’s allegations revolve around Google’s alleged exploitation of its market dominance to unjustly exclude competitors while positioning itself as the gatekeeper of the online domain. This legal showdown marks the initial instance in which the government has brought Google to trial in a landmark antitrust case. Concurrently, the justice department has allied itself with a separate lawsuit led by attorneys general from 38 states and territories, focusing on concerns surrounding Google’s monopoly in advertising.
Google staunchly maintains its innocence in both lawsuits and has not yet issued an immediate comment in response. Likewise, the justice department has remained tight-lipped.
In a significant development disclosed last month, Judge Amit P Mehta dismissed several charges against Google, albeit narrowing the scope of the case, a modest win for the tech giant. Specifically, he ruled that Google need not defend itself against allegations that the design of its search results page adversely impacted competitors like Expedia or Yelp.
Nevertheless, Mehta greenlit the pursuit of more substantial charges, including allegations that Google’s exclusive contracts with phone manufacturers harmed its competitors. The department contends that Google disburses billions annually to secure default status for its primary search engine, and in many instances, to explicitly prohibit Google’s counterparts from engaging with rival entities.
In a revealing statement, Mehta underscored that Google’s brand had become so ubiquitous that it was recognized as a verb in dictionaries. Notably, he pointed out that Google’s market share in 2020 approached nearly 90%, with advertisers expending over $80 billion annually to target general search users.
Crucially, Mehta elucidated that a company with monopolistic power breaches the law only when its actions obstruct competition. The judge emphasized that the justice department must demonstrate that each specific action, such as Google’s handling of search advertising, independently violates antitrust regulations. This precludes the government from presenting a cumulative series of actions as an antitrust violation.
Kent Walker, Google’s chief legal officer, voiced the company’s anticipation for the trial, asserting that promoting and distributing their services adheres to the law and stimulates healthy competition.
As big tech corporations, long insulated from legal repercussions, confront mounting lawsuits, such as those targeting Google, a turning tide in their fortunes may be on the horizon. An antitrust lawsuit against Meta filed by attorneys general was dismissed earlier this year, while the Federal Trade Commission, under the leadership of antitrust advocate Lina Khan, initiated a suit against Amazon.
The outcome of the Google case, the inaugural major trial of its kind, may serve as a litmus test for the extent to which the prevailing tide may shift.
