On October 20, the Justice Department revived a conflict that has lain dormant for over twenty years. The DOJ announced that they would take the necessary steps to sue Google over antitrust violations. For the past several decades, antitrust has become a hot button issue in American politics. Technology giants like Google, Apple, Facebook, and Amazon spend billions of dollars a year suppressing competition and consolidating the entire technology landscape. This article will take a deep dive into the case the US Government has against Google. We will also discuss how the Google lawsuit could be a stepping stone to reigning in the entire technology industry.
The Antitrust Case Against Google
Antitrust laws first started taking shape in America during the late 19th century. As railroad travel gained popularity throughout the country, many small railroad companies were bought up and consolidated into massive systems. In 1890, to ensure the protection of small railroad companies from consolidation, Congress passed the Sherman Antitrust Act. The Sherman Antitrust Act remains the backbone of antitrust laws. The law states that it is illegal to suppress the trade of your competitors or to create a monopoly. The Justice Department was also given authority to prosecute any entity that violates antitrust laws.
The antitrust lawsuit against Google relies on the suppression of competition to make its case. According to the DOJ, Google spends billions of dollars a year to compel phone manufacturers and other technology companies to prioritize the Google search engine over its competition. In 2020 Google Search accounted for 88% of all searches in the United States. Documents presented by the DOJ stated Google spends $8 to $12 billion a year in a deal with Apple to make Google the default search engine on all Apple products. Google was quick in denying any wrongdoing in its search engine practices. A Tweet made by Google states, “Today’s lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to -- not because they’re forced to or because they can’t find alternatives.”
Lawmakers want to see more charges levied against Google. Earlier in the year, a House Judiciary committee was formed to look into antitrust violations within the technology industry. The committee found that Google is forcing itself into other markets by acquiring smaller companies for their competing technology. Rep. David Cicilline says this on the matter, “It is critical that the Justice Department’s lawsuit focuses on Google’s monopolization of search and search advertising, while also targeting the anti-competitive business practices Google is using to leverage this monopoly into other areas, such as maps, browsers, video, and voice assistants.”
Opponents of the DOJ’s latest lawsuit say it was created for political purposes only. With so little time remaining before the 2020 election, many politicians believe the Trump Administration is using the Google lawsuit to put another feather in Trump’s hat. Alex Harman, a competition policy advocate for Public Citizen, is not convinced the DOJ will enforce any lasting penalties. In a statement, Alex says, “The government’s narrow focus and alienation of the bipartisan state attorneys general is evidence of an unserious approach driven by politics and is likely to result in nothing more than a choreographed slap on the wrist for Google.”
Where the Antitrust Law Against Google Stands
The Department of Justice has presented a compelling argument against Google. There is clear evidence that Google used its vast size and wealth to suppress competing companies. Law professionals, including Columbia law professor Tim Wu, believe the case against Google is identical to Microsoft’s antitrust case in 1998. In 1998, the DOJ sued Microsoft for violating antitrust laws by defaulting all PCs to their own internet browser. The case was settled in 2001, and Microsoft had to share its application programming interface or API with third-party developers.
However, even with a strong case against Google, the fight will not be an easy one. If Google does not decide to settle, the earliest a court date will be around the end of 2021 or early 2022. Also, it is unclear what actions the Department of Justice will take against Google. Congress wants Google to be broken up into smaller companies, so they are easier to regulate. While others believe the DOJ will take the same route as the European Union took several years ago. The European Union decided to levy hefty fines against Google instead of breaking the company into smaller pieces.
Many in the government and country at large hope that this latest lawsuit against Google marks the beginning of reigning in the technology giants. The methods Google uses to grow and protect its business are not unique to Google. The same judiciary committee that condemned Google also went after Apple, Facebook, and Amazon for conducting the same practices.
Bibliography
Balsamo, Michael. “Justice Dept. Files Landmark Antitrust Case against Google.” AP NEWS, Associated Press, 20 Oct. 2020, apnews.com/article/google-justice-department-antitrust-0510e8f9047956254455ec5d4db06044.
Beattie, Andrew. “Why Did Microsoft Face Antitrust Charges in 1998?” Investopedia, Investopedia, 28 Aug. 2020, www.investopedia.com/ask/answers/08/microsoft-antitrust.asp.
Charlton, Hartley. “Google Reportedly Pays Apple $8-12 Billion Per Year to Be Default IOS Search Engine.” MacRumors, MacRumors, 25 Oct. 2020, www.macrumors.com/2020/10/25/google-apple-search-default-8-12-billion/.
