The US vs Google: the antitrust trial that could forever change how big tech operates
The Department of Justice (DOJ) brought Google to court on antitrust charges. The trial, lasting ten weeks, will end in mid-November, and its results could change how tech companies operate.
According to the New York Times, the Department of Justice built its case against the internet giant over three years. It is the first monopoly trial of the modern internet era.
The lawsuit claims that the business model that Google uses to ensure the domination of its search engine is filled with questionable methods to crush smaller companies and competition.
It concentrates specifically on the deals that Google makes with other companies, paying a lot of money to make their search engine the default on many browsers or devices.
Image: Nathana Rebouças / Unsplash
The DOJ is especially interested in reviewing the deals that Google has made with Apple to become the default search engine in Safari and the iPhone, without users even realizing it.
During the nearly nine weeks of trial, both parties have dissected Google as a company, reviewing its beginning as a small but promising start-up and how it became a $1.7 billion company.
Image: Hebi B. / Pixabay
The DOJ has analyzed every aspect of the business model behind Google's search engine, which mainly uses targeted advertising to monetize the users' free searches.
Rebecca Allensworth, a professor at Vanderbilt University's law school, told The New York Times that the lawsuit will test how laws created in 1890 to break up monopolies on railroads or sugar could be applied to Big Tech.
These laws examine if a company obtained a monopoly fraudulently and if it used its power to raise prices. Since their search engine is free, the DOJ has to prove that Google affected consumers in other ways.
The DOJ argues that Google's default deals impacted consumers by giving them fewer choices, which could reduce the quality of the service. They also claim that advertisers had to pay arbitrary prices.
On the other hand, Google has argued that their deals have improved the experience, and their model allows for open-source products that democratize access to the internet worldwide.
Still, the company is dealing with other antitrust lawsuits—a similar one, filled by 35 states, and one against the Android Play Store filled by Epic Games, the Fortnite creator.
If it loses against the US government, Google might have to pay damages, change part of its search engine business model, and restructure part of the company.
That outcome could also have a broader effect on the industry, as prioritizing their products over the competition is a crucial part of the business model of most Big Tech companies.
However, it is hard to tell how profound the repercussions will be. In 1998, the Department of Justice took Microsoft to court over similar charges, and it did not have a rippling effect on how internet companies operate now.
Even if the judge rules in favor of the DOJ, the court battle will likely continue to the Supreme Court. It will be years before the consequences are visible.