A US judge handling the Justice Department’s antitrust lawsuit against Google, which accuses the tech giant of maintaining unlawful monopolies in the internet search market, has made a significant decision. Some of the key claims made by the federal government were allowed to stand, while Google’s request for summary judgment on all the claims was partly granted. The case will proceed to trial next month.
The Justice Department filed the lawsuit in 2020, alleging that Google, valued at $1.6 trillion and a part of Alphabet, illegally leveraged its market dominance to suppress competitors, making it the most significant challenge to Big Tech’s power since the 1998 case against Microsoft Corp.
US Judge Amit Mehta is overseeing another case against Google, brought forth by attorneys general from 38 states and territories. In the current ruling, Mehta dismissed some accusations from the states, stating that they failed to demonstrate anticompetitive effects in the relevant market concerning Google making it harder for users to find specialized search engines like Expedia or OpenTable.
Google responded positively to the court’s decision and expressed its intention to defend its practices at the upcoming trial. The company’s chief legal officer, Kent Walker, stated that they believe promoting and distributing their services is both legal and pro-competitive.
Google has consistently denied any wrongdoing in both cases. Mehta pointed out that Google’s brand name has become synonymous with searching, and the company holds a significant share of the market, with nearly 90% of the US internet search market in 2020. Advertisers spend over $80 billion annually to reach users through Google’s search platform.
Mehta emphasized that the government would need to demonstrate that each specific action taken by Google, such as its handling of search advertising, violates antitrust law. The government cannot merely argue that a series of actions cumulatively constitutes a violation.
The government’s argument includes claims that Google paid billions of dollars annually to smartphone manufacturers, carriers, and browsers to be the default search engine for their customers. Mehta decided not to dismiss this argument, allowing it to be considered in the trial.
This is not the only antitrust case Google is facing. Another case focused on advertising technology has also been brought against the company, and a judge in Virginia recently denied Google’s motion to dismiss it, finding the government’s case strong enough to proceed. In that case, the government seeks to force Google to sell its ad manager suite, while Google continues to deny any wrongdoing.
