The Significance of Google’s Antitrust Lawsuit

History was made on January 24, 2023, when the United States Department of Justice filed an antitrust lawsuit against Google, the first large-scale suit against a company that dominated the technology industry in decades. According to the Justice Department and the Attorney Generals of eight states, Google engaged in illegal trade restraints resulting in the company monopolizing digital advertising products (“Justice Department”). Google thereby violated Sections 1 and 2 of the Sherman Act, a landmark antitrust law in which Section 1 prohibits firms from engaging in horizontal restraints, i.e. contracts that inhibit trade and anti-competitive agreements between firms. Section 2 prohibits monopolistic industry practices and predatory behavior against competitors. 

The United States Justice Department’s evidence that Google engaged in the aforementioned alleged activities is as follows: Over the past 15 years, Google eliminated ad tech competitors by purchasing them, forcing the use of its own products on entities in the digital advertising industry. Google thereby exerted monopolistic practices onto digital publishing and advertising fields by ensuring ad auctions, advertisers, and publishers relied on its products. 

In addition, Google coordinated illegal business dealings with companies to ensure their search engine would be the default web browser on electronic devices (“Justice Department”). Google even made contractual arrangements with Apple and Samsung by which products include pre-installed apps and services of Google (Fung, Brian). In sum, the Department of Justice asserts that the company engaged in anticompetitive behavior by acquiring competitors, auction manipulation, facilitating forced usage of its products, and illegal exclusive contracts with other businesses. According to NPR, in September 2023 Google was worth $1.7 trillion with an alarming search engine market share of 90% (Kerr, Dara).

This monopolization lawsuit was just recently taken to court in September of 2023. The Department of Justice intends to restore competition in digital advertising and web browsing industries and “equitable monetary relief on behalf of the American public,” (“Justice Department”). According to CNN, DOJ lawyer Kenneth Dintzer stated, “This case is about the future of the internet, and whether Google’s search engine will ever face meaningful competition,” (Fung, Brian). Sanctions against Google in the case that the United States Government wins the lawsuit Google remains uncertain. Potential actions that can be taken against Google in this case span from fines to a comprehensive reevaluation of the company’s operations. 

Antitrust cases are taken seriously within the government due to the negative effects firms’ anticompetitive behavior can have on consumers. These include lower product quality, less product variety, and higher prices, to speak broadly. This antitrust case will set a precedent for standards of market competition in the modern tech industry. NPR author Dara Kerr states, “​​The outcome of the case could change how tech giants are able to do business and, in effect, how the internet is run,” (Kerr, Dara).

Written by Sania Sadarangani

References

Fung, Brian. “Landmark Google Trial Opens with Sweeping DOJ Accusations of Illegal Monopolization | CNN Business.” CNN, Cable News Network, 12 Sept. 2023, www.cnn.com/2023/09/12/tech/google-antitrust-lawsuit-government-trial-duplicate-2/index.html. 

“Justice Department Sues Google for Monopolizing Digital Advertising Technologies.” Office of Public Affairs | Justice Department Sues Google for Monopolizing Digital Advertising Technologies | United States Department of Justice, 2 Feb. 2023, www.justice.gov/opa/pr/justice-department-sues-google-monopolizing-digital-advertising-technologies. 

Kerr, Dara. “United States Takes on Google in Biggest Tech Monopoly Trial of 21st Century.” NPR, NPR, 12 Sept. 2023, www.npr.org/2023/09/12/1198558372/doj-google-monopoly-antitrust-trial-search-engine.