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 8 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

Justin Verlander and Giants Agree to $15M, 1-Year Deal

DON'T MISS

A’s Ink Slugger Brent Rooker to $60M, 5-Year Deal

DON'T MISS

Los Angeles Officials Order 30,000 Residents to Evacuate as Fire Advances on Homes

DON'T MISS

The 49ers Fire Special Teams Coordinator Brian Schneider, AP Source Says

DON'T MISS

Elon Musk Helped Trump Win. Now He’s Looking at Europe, and Many Politicians Are Alarmed

DON'T MISS

Flying Taxis on the Horizon as Aviation Soars Into a New Frontier

DON'T MISS

Former CEO of Fresno EOC Is Returning to Head Troubled Agency

DON'T MISS

Northern Illinois Will Join Mountain West for Football Only in 2026

DON'T MISS

US Justice Department Accuses Six Major Landlords of Scheming to Keep Rents High

DON'T MISS

Trump Refuses to Rule Out Use of Military Force to Take Control of Greenland and the Panama Canal

UP NEXT

A’s Ink Slugger Brent Rooker to $60M, 5-Year Deal

UP NEXT

Los Angeles Officials Order 30,000 Residents to Evacuate as Fire Advances on Homes

UP NEXT

The 49ers Fire Special Teams Coordinator Brian Schneider, AP Source Says

UP NEXT

Elon Musk Helped Trump Win. Now He’s Looking at Europe, and Many Politicians Are Alarmed

UP NEXT

Flying Taxis on the Horizon as Aviation Soars Into a New Frontier

UP NEXT

Former CEO of Fresno EOC Is Returning to Head Troubled Agency

UP NEXT

Northern Illinois Will Join Mountain West for Football Only in 2026

UP NEXT

US Justice Department Accuses Six Major Landlords of Scheming to Keep Rents High

UP NEXT

Bredefeld Tries to ‘Shake up Good Ol’ Boys Club’ on Day One

UP NEXT

Aubrey Plaza Responds to Husband Jeff Baena’s Death: ‘Unimaginable Tragedy’

The 49ers Fire Special Teams Coordinator Brian Schneider, AP Source Says

5 hours ago

Elon Musk Helped Trump Win. Now He’s Looking at Europe, and Many Politicians Are Alarmed

5 hours ago

Flying Taxis on the Horizon as Aviation Soars Into a New Frontier

6 hours ago

Former CEO of Fresno EOC Is Returning to Head Troubled Agency

6 hours ago

Northern Illinois Will Join Mountain West for Football Only in 2026

6 hours ago

US Justice Department Accuses Six Major Landlords of Scheming to Keep Rents High

6 hours ago

Trump Refuses to Rule Out Use of Military Force to Take Control of Greenland and the Panama Canal

7 hours ago

Bredefeld Tries to ‘Shake up Good Ol’ Boys Club’ on Day One

7 hours ago

Aubrey Plaza Responds to Husband Jeff Baena’s Death: ‘Unimaginable Tragedy’

7 hours ago

Washington Post Lays Off 4% of Its Workforce

8 hours ago

Justin Verlander and Giants Agree to $15M, 1-Year Deal

SAN FRANCISCO  — Justin Verlander and the San Francisco Giants have agreed to a $15 million, one-year contract, according to a person with d...

4 hours ago

Justin Verlander Will Join Giants
4 hours ago

Justin Verlander and Giants Agree to $15M, 1-Year Deal

5 hours ago

A’s Ink Slugger Brent Rooker to $60M, 5-Year Deal

Flames rise as the Palisades Fire advances on homes in the Pacific Palisades neighborhood of Los Angeles, Tuesday, Jan. 7, 2025. (AP/Ethan Swope)
5 hours ago

Los Angeles Officials Order 30,000 Residents to Evacuate as Fire Advances on Homes

5 hours ago

The 49ers Fire Special Teams Coordinator Brian Schneider, AP Source Says

5 hours ago

Elon Musk Helped Trump Win. Now He’s Looking at Europe, and Many Politicians Are Alarmed

6 hours ago

Flying Taxis on the Horizon as Aviation Soars Into a New Frontier

6 hours ago

Former CEO of Fresno EOC Is Returning to Head Troubled Agency

6 hours ago

Northern Illinois Will Join Mountain West for Football Only in 2026

Help continue the work that gets you the news that matters most.

Search

Send this to a friend