DOJ’s Antitrust Case Against Google Wraps Up
Apple’s Eddy Cue and Microsoft’s Satya Nadella have been key witnesses in the case.
- The U.S. Department of Justice (DOJ) has wrapped up its arguments in a major antitrust lawsuit against Google.
- Google has been accused of paying up to $10 billion annually to generate users of its search engine while preventing other tech companies from competing.
The DOJ is set to rest its case against Google’s search engine monopoly this week, a key juncture in one of the most consequential lawsuits for the company. Following this, Google will get an opportunity to present its defense against the DOJ’s allegations.
The DOJ has accused Google of paying up to $10 billion annually to generate users of its search engine while preventing other tech companies, including Apple and Microsoft, from competing.
High-profile executives, including Satya Nadella of Microsoft and Eddy Cue of Apple, took the stand in previous weeks to prove Google’s illegal monopoly on online search and associated advertising. The DOJ has also brought several present and former Google employees to testify.
A key challenge for Google in the coming weeks will be to appropriately explain why it has been making such large payouts for its search engine. It will also have to disprove the DOJ’s claim that Google’s prominent position on mobile phones and browsers discourages users from seeking alternatives.
The DOJ has also accused Google of unfairly pushing up internet advertising prices and controlling online auctions by manipulating how buyers and sellers connect on the platforms.
See More: Apple Caltech Billion-Dollar Patent Lawsuit Ends With Settlement
Apple Partnership Key to DOJ Case
The heart of the DOJ’s case is Google’s partnership with Apple, which has lasted for over 20 years. Initially, the deal between the two tech giants allowed Apple to use Google for its Safari browser for free. Over time, Google had to pay Apple a share of advertising revenue every year between $4 and $7 billion. The agreement also required Apple to defend and support the deal if challenged by regulators.
The deal between Google and Apple made things difficult for major competitors like Microsoft. While Apple initially used Bing for its Siri voice assistant, by 2017, Apple had once again transitioned to Google. Satya Nadella, Microsoft’s CEO, has testified to his unsuccessful efforts in persuading Apple to move away from Google since 2014.
Much of the testimony in the case has been held behind closed doors. The judge, Amit Mehta, is unlikely to reach a decision before 2024. Even then, any concrete results will likely not emerge for years, owing to appeals and the potential for remedial trials if the DOJ does emerge victorious. The case could also generate bad optics for Apple for encouraging Google’s anti-competitive policies.
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