A trial portrayed as a war for the soul of the internet began in front of a federal court in Washington on Tuesday. The United States contended that Google (GOOGL.O) did not play by the rules in its attempts to preserve its dominance in online search.
The United States Department of Justice accuses Google of paying billions of dollars yearly to browser makers like Mozilla, telecommunications providers like AT&T (T.N), and device manufacturers like Apple Inc (AAPL.O) to ensure that Google’s search engine remains at the top of the rankings.
Google’s stance is straightforward: The company contends that its dominant market share is not the result of illegal activity on its part but rather of the fact that it is a powerful and efficient search engine. It is also completely free.
According to the argument that Google’s legal team will present, consumers may use an alternate search engine by deleting the Google app from their smartphones or by entering Microsoft’s Bing, Yahoo, or DuckDuckGo into a web browser. They will claim that customers remain loyal to Google because they depend on the company to answer their inquiries and are satisfied with the results.
The opening statements will be given on Tuesday in front of a full house at the federal court in Washington, DC, and it is anticipated that the trial will last for up to ten weeks. There are two stages to it. In the first case, Judge Amit Mehta will assess whether or not Google has violated antitrust legislation in how the company oversees search and advertising related to search.
If it is discovered that Google has violated the law, Judge Mehta will determine how the situation should be resolved. He might opt to merely compel Google to cease engaging in activities he has discovered to be unlawful, or he could decide to force Google to liquidate assets instead.
In its lawsuit, the government requested “structural relief as necessary,” although it could not clarify what that phrase meant.
The legal battle has significant repercussions for Big Tech, which has been accused of buying out or stifling small competitors. However, Big Tech has been able to protect itself from many accusations of violating antitrust law because the services that the companies offer to customers are either free, as in the case of Google, or inexpensive, as in the case of Amazon.com (AMZN.O).
Microsoft, filed in 1998, and AT&T, brought in 1974, are two examples of previous important antitrust lawsuits. The struggle against Microsoft is credited with making room on the internet for Google and other companies. In contrast, the separation of AT&T in 1982 is said to have been essential in developing the contemporary mobile phone business.
