Google, DOJ make closing arguments in antitrust trial

Posted On 03 May 2024
Comment: Off

The stage is set for a monumental court decision that could shake up the search industry – or result in status quo.

Google and the Department of Justice are presenting their closing arguments today and tomorrow in the government’s landmark antitrust case against the company that owns a global search monopoly.

Rewind. The 10-week, high-stakes legal battle probed the business practices of Google Search last fall.

Why we care: The outcome of this case could forever change how Google operates, which would have downstream impacts on search marketers. The ruling could lead to a leveling of the advertising market, meaning lower costs and more choice.

What to watch: The DOJ will summarise its significant allegations against Google on Thursday and Friday. Allegations come down to these three main points:

  • Google used lucrative deals with partners like Apple to cement itself as the default search engine across devices and platforms.
  • Google paid billions annually to secure those default positions – $26 billion in 2021 alone. (This includes $20 billion alone to be the default on Apple’s Safari browser, according to newly unsealed court records.)
  • Google failing to justify why it pays so much beyond stifling competition

The other side: Google rejected accusations of anticompetitive conduct, asserting that users prefer its best-in-class search engine and that its dominance is not due to any alleged monopolistic tactics.

  • “We are working very, very hard; for any given query we provide the best experience,” CEO Sundar Pichai testified. “That’s always been our true north.”

Bottom line: This landmark case carries existential implications for Google’s core search business if the DOJ prevails.

What’s next: After closing arguments, Judge Amit Mehta will weigh the liability case before him. One potential (though unlikely) outcome could be a breakup of Google, which will be determined later if he rules against the company.

 

About the Author