In a once-in-a-generation antitrust battle with Alphabet’s Google (GOOGL.O), Microsoft (MSFT.O) CEO Satya Nadella will join the U.S. Justice Department on Monday.
The government will probably question Nadella about the challenges that Google’s dominance caused as Microsoft worked to expand Edge and Bing, its browser and search engine.
The government claims that Google, which is valued at more than $1 trillion and controls 90% of the search industry, illegally pays $10 billion a year to wireless providers like AT&T (T.N) and smartphone manufacturers like Apple (AAPL.O) to be the default search engine on their products. Google’s earnings have increased because of its dominance in the competitive advertising sector.
Google has tried to demonstrate that its success is not the result of criminal activity but rather the high caliber of its goods.
Long after Microsoft had been the target of its federal antitrust litigation, Nadella was named CEO in 2014. This legal battle, which started in 1998 and culminated in a settlement in 2001, caused Microsoft to change some of its business methods and made room for firms like Google.
The two developed a fierce rivalry as Google, which was formed in 1998 and is now the largest search engine in the market. Both use similar email services, search engines, and browsers, among many other things. They have lately developed a rivalry in artificial intelligence, with Google investing extensively in the Bard AI chatbot and Microsoft making significant expenditures in OpenAI.