Google has exploited its dominance of the internet search market to lock out competitors and smother innovation, the Department of Justice said Tuesday at the opening of the biggest U.S. antitrust trial in a quarter century.
The US government on Tuesday accused Google of paying out $10 billion a year to Apple and other firms in order to safeguard its monopoly over online search.The accusation came on the opening day of a landmark trial
that is the biggest antitrust case in the United States in more than two
decades.
“This case is about the future of the internet and whether
Google will ever face meaningful competition in search,” said Justice
Department lawyer Kenneth Dintzer as the United States government began making
its case against the tech titan.
Over 10-weeks and with dozens of witnesses called to the
bar, Google will try to persuade Judge Amit P. Mehta that the case brought by
the Department of Justice is without merit.
“Google has for decades innovated and improved its search
engine, plaintiffs escape this inescapable truth,” Google’s lawyer John
Schmidtlein argued before the court.
Held in a Washington courtroom, the trial is the first time
US prosecutors have tackled a big tech company head-on since Microsoft was
targeted more than two decades ago over the dominance of its Windows operating
system.
“Even for Washington DC, I think we have the highest
concentration of blue suits in any location here today,” Mehta joked, observing
the dozens of lawyers packed into his courtroom.
The Google case centers on the government’s contention that
the tech titan unfairly gained its domination of online search by forging
exclusivity contracts with device makers, mobile operators and other companies
that left rivals no chance to compete.
Dintzer told Judge Mehta that Google pays out $10 billion
every year to Apple and others to secure its search engine default status on
phones and web browsers, thereby burying upstarts before they have a chance to
grow.
Over the past decade, this created what the government calls
a “feedback loop” in which Google’s dominance grew ever bigger because of its
monopolist access to user data that rivals could never match.
“Through this feedback loop, this wheel has been turning for
more than 12 years. It always turns to Google’s advantage,” Dintzer said.
That dominance has made Google parent Alphabet one of the
world’s richest companies, with search ads generating nearly 60 percent of the
company’s revenue, dwarfing income from other activities such as YouTube or
Android phones.
“We will track what Google did to maintain its monopoly…
It’s not about what it could have done or should have done, it’s about what
they did,” Dintzer told the court.
Court ‘Cannot Intervene’
Google firmly rejected the US case saying that its search
engine was successful because of its quality and the huge investments made over
the years.
“This court cannot intervene in the market and say ‘Google
you are not allowed to compete.’ That is anathema to US antitrust law,”
Google’s Schmidtlein said.
Schmidtlein insisted that testimony from executives at Apple
and others will demonstrate that Google won the coveted default status on
iPhone and browsers “on the merits.”
The biggest alleged victims in the case are rival search
engines that have yet to eke out a meaningful market share for search or search
ads against Google, like Microsoft’s Bing and DuckDuckGo.
Google remains the world’s go-to search engine, capturing 90
percent of the market in the United States and across the globe, much of which
comes through mobile usage on iPhones and phones running on Google-owned
Android.
Mehta’s ruling is expected many months after the roughly
three months of hearings.
He could dismiss the government’s arguments or order drastic
remedial action such as a breakup of Google’s businesses or a revamp of the way
it operates.
Whatever the outcome, the ruling will almost certainly be
appealed by either side, potentially dragging the case on for years.
Launched in 1998, Washington’s case against Microsoft ended
in a settlement in 2001 after an appeal reversed an order that the company be
split up.
AFP