Please ensure Javascript is enabled for purposes of website accessibility
Google, Justice Department Make Final Arguments About Whether Search Engine is a Monopoly
gvw_ap_news
By Associated Press
Published 3 months ago on
May 3, 2024

The Justice Department and Google make final arguments in a high-stakes antitrust lawsuit. The case revolves around Google's dominance as a search engine and its contracts with other companies. (AP File)

Share

Getting your Trinity Audio player ready...

WASHINGTON — Google’s preeminence as an internet search engine is an illegal monopoly propped up by more than $20 billion spent each year by the tech giant to lock out competition, Justice Department lawyers argued at the closings of a high-stakes antitrust lawsuit.

Google, on the other hand, maintains that its ubiquity flows from its excellence, and its ability to deliver results customers are looking for.

The U.S. government, a coalition of states and Google all made their closing arguments Friday in the 10-week lawsuit to U.S. District Judge Amit Mehta, who must now decide whether Google broke the law in maintaining a monopoly status as a search engine.

Google’s Strength and Contracts

Much of the case, has revolved around how much Google derives its strength from contracts it has in place with companies like Apple to make Google the default search engine preloaded on cellphones and computers.

At trial, evidence showed that Google spends more than $20 billion a year on such contracts. Justice Department lawyers have said the huge sum is indicative of how important it is for Google to make itself the default search engine and block competitors from getting a foothold.

Google responds that customers could easily click away to other search engines if they wanted, but that consumers invariably prefer Google. Companies like Apple testified at trial that they partner with Google because they consider its search engine to be superior.

Google’s Market Definition

Google also argues that the government defines the search engine market too narrowly. While it does hold a dominant position over other general search engines like Bing and Yahoo, Google says it faces much more intense competition when consumers make targeted searches. For instance, the tech giant says shoppers may be more likely to search for products on Amazon than Google, vacation planners may run their searches on AirBnB, and hungry diners may be more likely to search for a restaurant on Yelp.

And Google has said that social media companies like Facebook and TikTok also present fierce competition.

Google’s Ad Revenue and Market Strength

During Friday’s arguments, Mehta questioned whether some of those other companies are really in the same market. He said social media companies can generate ad revenue by trying to present ads that seem to match a consumer’s interest. But he said Google has the ability to place ads in front of consumers in direct response to queries they submit.

“It’s only Google where we can see that directly declared intent,” Mehta said.

Google’s lawyer, John Schmidtlein, responded that social media companies “have lots and lots of information about your interests that I would say is just as powerful.”

The company has also argued that its market strength is tenuous as the internet continually remakes itself. It noted that many experts once considered it irrefutable that Yahoo would always be dominant in search. Today, it said that younger tech consumers sometimes think of Google as “Grandpa Google.”

While Google’s search services are free to consumers, the company generates revenue from searches by selling ads that accompany a user’s search results.

Justice Department attorney David Dahlquist said during Friday’s arguments that Google was able to increase its ad revenue through growth in the number of queries submitted until about 2015 when query growth slowed and they needed to make more money on each search.

The government argues that Google’s search engine monopoly allows it to charge artificially higher prices to advertisers, which eventually carry over to consumers.

“Price increases should be bounded by competition,” Dahlquist said. “It should be the market deciding what the price increases are.”

Dahlquist said internal Google documents show that the company, unencumbered by any real competition, began tweaking its ad algorithms to sometimes provide worse search ad results to users if it would increase revenue.

Google’s lawyer, Schmidtlein, said the record shows that its search ads have become more effective and more helpful to consumers over time, increasing from a 10% click rate to 30%.

Mehta has not yet said when he will rule, though there is an expectation that it may take several months.

If he finds that Google violated the law, he would then schedule a “remedies” phase of the trial to determine what should be done to bolster competition in the search-engine market. The government has not yet said what kind of remedy it would seek.

RELATED TOPICS:

DON'T MISS

Google Makes Abrupt U-turn by Dropping Plan to Remove Ad-tracking Cookies on Chrome Browser

DON'T MISS

ICJ Rules Israeli Occupation Illegal, Urges Global Action as Biden Prepares to Meet Netanyahu

DON'T MISS

With US Vehicle Prices Averaging Near $50K, General Motors Sees 2nd-Quarter Profits Rise 15%

DON'T MISS

Fred Warner Picked as the Top Linebacker in the AP’s NFL Top 5 Rankings

DON'T MISS

Teoscar Hernández Has 3 Hits, Drives in 3 Runs as Dodgers Defeat Giants for 4th Straight Win

DON'T MISS

Wildfires Plague the West Amid a Scorching Heat Wave and High Winds

DON'T MISS

Trump’s New Rival May Bring Out His Harshest Instincts

DON'T MISS

Kentucky Gov. Andy Beshear Endorses Harris Amid Speculation if He’s in Running to Join the Ticket

DON'T MISS

Frustrated Californians May Be Ready for a Tougher Approach to Crime

DON'T MISS

Secret Service Director Steps Down After Assassination Attempt Against Ex-President Trump at Rally

UP NEXT

ICJ Rules Israeli Occupation Illegal, Urges Global Action as Biden Prepares to Meet Netanyahu

UP NEXT

With US Vehicle Prices Averaging Near $50K, General Motors Sees 2nd-Quarter Profits Rise 15%

UP NEXT

Fred Warner Picked as the Top Linebacker in the AP’s NFL Top 5 Rankings

UP NEXT

Teoscar Hernández Has 3 Hits, Drives in 3 Runs as Dodgers Defeat Giants for 4th Straight Win

UP NEXT

Wildfires Plague the West Amid a Scorching Heat Wave and High Winds

UP NEXT

Trump’s New Rival May Bring Out His Harshest Instincts

UP NEXT

Kentucky Gov. Andy Beshear Endorses Harris Amid Speculation if He’s in Running to Join the Ticket

UP NEXT

Frustrated Californians May Be Ready for a Tougher Approach to Crime

UP NEXT

Secret Service Director Steps Down After Assassination Attempt Against Ex-President Trump at Rally

UP NEXT

Calls for Maya Rudolph to Reprise Her Kamala Harris on ‘SNL’ Are Flooding Social Media

Fred Warner Picked as the Top Linebacker in the AP’s NFL Top 5 Rankings

17 mins ago

Teoscar Hernández Has 3 Hits, Drives in 3 Runs as Dodgers Defeat Giants for 4th Straight Win

19 mins ago

Wildfires Plague the West Amid a Scorching Heat Wave and High Winds

25 mins ago

Trump’s New Rival May Bring Out His Harshest Instincts

31 mins ago

Kentucky Gov. Andy Beshear Endorses Harris Amid Speculation if He’s in Running to Join the Ticket

41 mins ago

Frustrated Californians May Be Ready for a Tougher Approach to Crime

48 mins ago

Secret Service Director Steps Down After Assassination Attempt Against Ex-President Trump at Rally

1 hour ago

Calls for Maya Rudolph to Reprise Her Kamala Harris on ‘SNL’ Are Flooding Social Media

3 hours ago

Haunted Hikes and Campfire Frights Give Campers the Chills Across the US This Summer

3 hours ago

Dems Run the California Capitol. When the Party Backs a Bill, Lawmakers Pay Attention.

4 hours ago

Google Makes Abrupt U-turn by Dropping Plan to Remove Ad-tracking Cookies on Chrome Browser

LONDON — Google is dropping plans to eliminate cookies from its Chrome web browser, making a sudden U-turn on four years of work to phase ou...

5 mins ago

5 mins ago

Google Makes Abrupt U-turn by Dropping Plan to Remove Ad-tracking Cookies on Chrome Browser

11 mins ago

ICJ Rules Israeli Occupation Illegal, Urges Global Action as Biden Prepares to Meet Netanyahu

16 mins ago

With US Vehicle Prices Averaging Near $50K, General Motors Sees 2nd-Quarter Profits Rise 15%

17 mins ago

Fred Warner Picked as the Top Linebacker in the AP’s NFL Top 5 Rankings

19 mins ago

Teoscar Hernández Has 3 Hits, Drives in 3 Runs as Dodgers Defeat Giants for 4th Straight Win

25 mins ago

Wildfires Plague the West Amid a Scorching Heat Wave and High Winds

31 mins ago

Trump’s New Rival May Bring Out His Harshest Instincts

41 mins ago

Kentucky Gov. Andy Beshear Endorses Harris Amid Speculation if He’s in Running to Join the Ticket

MENU

CONNECT WITH US

Search

Send this to a friend