By: Brandon J. Bryant
In October 2020, the U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit against Google LLC, alleging that the company has unlawfully maintained monopolies in the search and search advertising markets. The DOJ’s complaint alleges that Google has engaged in a variety of anti-competitive practices, including:
- Giving its own search engine preferential treatment in its web browser, Chrome, and other products and services.
- Making it difficult for other search engines to compete by requiring device manufacturers and mobile carriers to pre-install Google Search on their products.
- Paying billions of dollars to Apple to be the default search engine on iPhones and iPads.
The DOJ’s lawsuit is the latest in a series of antitrust investigations into Google’s business practices. In 2019, the European Commission fined Google €4.34 billion (about $5 billion) for abusing its dominance in the search market. In 2021, the DOJ filed a separate lawsuit against Google alleging that the company has monopolized the digital advertising market.
The trial in the DOJ’s search monopolization case is scheduled to begin in September 2023. If the DOJ is successful, it could force Google to change its business practices and open up the search market to more competition.
United States of America v. Microsoft Corp.
In its complaint, the DOJ relies heavily on the Microsoft antitrust case of 1998. In that case, the DOJ alleged that Microsoft had unlawfully maintained its monopoly in the operating system market by using its market power to force computer manufacturers to install its web browser, Internet Explorer, as the default browser on their computers.
The DOJ’s case against Google is similar in many ways to the Microsoft case. Both companies are dominant players in their respective markets, and both companies have been accused of using their market power to stifle competition. However, there are also some important differences between the two cases. For example, Google’s dominance in the search market is not as complete as Microsoft’s dominance in the operating system market. There are other search engines available, such as Bing and DuckDuckGo, that compete with Google.
The DOJ is hoping that the Microsoft case will provide a roadmap for how to break up Google’s search monopoly. In the Microsoft case, the court ordered the company to be split into two separate companies: one that would develop the Windows operating system, and the other that would develop other software products, such as Internet Explorer.
It is unclear whether the DOJ will be able to break up Google’s search monopoly. The case is likely to be long and complex, and Google is likely to fight the DOJ’s allegations vigorously. However, the Microsoft case shows that it is possible for the government to break up a tech giant that has become too powerful.
Why is the government relying on the Microsoft Antitrust Case?
There are a few reasons why the government is relying on the Microsoft Antitrust Case in its case against Google. First, the Microsoft case is a precedent-setting case that established the principle that companies can be held liable for abusing their monopoly power. Second, the Microsoft case provides a roadmap for how to break up a tech giant. Third, the Microsoft case shows that the government is willing to take on big tech companies.
The government’s reliance on the Microsoft Antitrust Case is not without its critics. Some argue that the case is outdated and does not apply to the tech industry today. Others argue that the government is overreaching and that breaking up Google would harm consumers.
What are the potential consequences of the DOJ’s case against Google?
The potential consequences of the DOJ’s case against Google are significant. If the DOJ is successful, it could force Google to change its business practices and open up the search market to more competition. This could lead to lower prices for consumers, more choices for businesses, and a more innovative search landscape.
However, it is important to note that the DOJ’s case is still in its early stages. It is possible that Google will be able to defend itself against the DOJ’s allegations. Even if Google is found to have violated antitrust law, the court could decide to impose a relatively mild penalty.
Only time will tell what the ultimate outcome of the DOJ’s case against Google will be. However, the case is a significant development in the ongoing antitrust scrutiny of Google’s business practices. It remains to be seen whether the DOJ will be able to break up Google’s search monopoly, but the case is a sign that the government is taking a hard look at the company’s power.