Google is facing a historic monopoly trial
Image: Google
Google is about to learn whether it will pass “Go” and receive $200, or head straight to (metaphorical) jail.
On Tuesday, a federal judge in DC will begin considering arguments in the US government’s first monopoly trial of the modern internet era, which involves a Justice Department lawsuit against the Alphabet-owned tech giant.
🤔⚖️ What are the charges?... The DOJ’s suit, initially filed by the Trump administration in late 2020, accuses Google of illegally amassing an 80% market share in the US online search industry, in part by paying smartphone makers like Apple and Samsung billions of dollars annually to have Google Search preloaded as the default option in their devices’ web browsers.
On the other hand, Google is claiming its deals with phone-makers shouldn’t be classified as monopolistic behavior for two reasons: 1) the agreements are open to any and all competing bidders, and 2) consumers can easily switch default search engines on their devices.
- The tech giant also says the allegations focus too narrowly on alleged harms to smaller competitors like Bing and DuckDuckGo, as opposed to the relatively minor impact on Google’s main rivals like Amazon, Facebook, TikTok, and other major sites where users go to search information.
👀 Looking ahead… The nonjury trial, which is expected to last around 10 weeks, will feature testimony from Google CEO Sundar Pichai, along with top execs from Apple and Samsung.
If the court rules against Google, the company could be ordered to pay significant fines, alter its relationships with smartphone-makers, and/or potentially break up its entire online search business – though legal experts say the last option isn’t very likely.
📊 Flash poll: In your opinion, do Google’s deals with smartphone-makers to preload its search engine as the default option represent illegal monopolistic behavior?
See a 360° view of what media pundits are saying →
Sprinkles in favor of regulating Google as a monopoly
- Some commentators argue that while Google provides beloved products and creates valued jobs, it has also abused its dominant position in the online search industry and severely harmed competition in the US market.
- Others contend that Google has slowly but surely been compromising the effectiveness of its search products in search of more profit – and the company’s illegal monopoly in the search engine industry has allowed it to get away scot-free until now.
- “A welcome antitrust case against Google” –Daily Camera Editorial Board
- “How does Google’s monopoly hurt you? Try these searches.” –Geoffrey A. Fowler, WaPo
- “Google, You Can’t Buy Your Way Out of This” –Tim Wu, NY Times
Sprinkles against regulating Google as a monopoly
- Some commentators argue that Google may well have a monopoly in the online search industry – but it’s also highly unlikely that the government can undo the monopoly without making everyone worse off, so things should remain as they are.
- Others contend that too much regulation from the US government would only end up favoring large and entrenched firms like Google over smaller and more nimble companies.
- “Yes, Google has a monopoly. What’s wrong with that?” –Megan McArdle, WaPo
- “Attack Monopoly Power With Deregulation, Not Antitrust Law” –Tyler Cowen, Bloomberg
- “Big Tech’s critics were wrong. Trustbusting isn’t the way.” –Sebastian Mallaby, WaPo
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