All is fair in love and war and perhaps business. At least, the business practices of the large tech companies highlight the truth of the statement when you look at the Google antitrust lawsuits in the US. For more than a year, a network of federal and state law enforcers have filed lawsuits against Google. It alleges that the company’s business practices are unfair, and the company is exploiting customers and illegally curtailing competition. Google faces at least four antitrust cases filed against it as the Department of Justice and three dozen states are up in arms against several wrongdoings.
All the cases relate to antitrust violations, although the wrongdoings are different in each case.
What are the Google Antitrust Cases?
The First Case
In October 2020, the Department of Justice filed the first case against Google, the most significant lawsuit in two decades against a tech company. The allegation against Google is about the monopoly over search activities by executing exclusive contracts with other companies to ensure that Google becomes the default search engine on smartphones and browsers. The DOJ states in the complaint that to make Google the default browser on Safari, the company paid Apple $12 billion per year. It further says that such deals with Apple and other smartphone makers allowed Google to maintain its stranglehold in searches and search-related businesses to enjoy an 80% market share.
The top position that Google enjoys in search across millions of devices results from spending billions of dollars to beat rivals and retain its monopoly.
The Second Case
A group of 10 states led by Texas filed a lawsuit against Google, another antitrust litigation, alleging the company running an illegal monopoly and suppressing competition by teaming up with Facebook to rig ad auctions. Seeing Facebook emerging as a rival in online advertising, Google agreed with Facebook. The deal would see Facebook reduce its online advertising space for special treatment when Google ad auctions take place.
The Third Case
The second antitrust litigation filed by the Attorney General of Colorado and Nebraska along with a group of 38 US states and territories accuses Google of illegally maintaining its unchallenged power in search advertising and general search services. The allegation is about Google’s three anti-competitive policies that help it retain a monopoly in search-related businesses. This argument echoes the accusations against Google about using its massive financial resources for paying Apple and other smartphone makers to maintain its monopoly. Google is trying to remain the default search engine that can throw its rivals out of the track by denying access to key distribution channels. The complaint also mentions Google’s similar attempts in maintaining a monopoly in the segment of internet-connected cars and voice assistants.
The allegation noted that interoperability with a competitor is severely lacking in the tool used for Google’s Search Ads services and putting advertisers at a disadvantage. Bypassing its general search engine, Google restricts consumers by pushing specific sites and services out of its search results.
Discrimination by Google against services offered by vertical providers like travel agencies who allow instant completion of a transaction is another allegation brought against Google. It becomes apparent that Google wants everyone to start their search operations by using Google’s search engine instead of visiting an app or a site directly. Google looks upon apps and websites as a threat to maintaining its monopoly in those markets because their success would strengthen the general search rivals they partner with and lower the high barriers created artificially to help Google protect its monopolies.
Google’s constant attempts to undermine competitive threats limit advertisers’ and consumers’ ability to make their choices and obtain information. Google’s actions are hindering the growth of emerging general search technology.
The Fourth Case
The fourth lawsuit filed by the States Attorney General is another antitrust Google lawsuit that alleges the company is abusing its power to undermine the app developers on Google Play Store.
The allegations of the Google antitrust lawsuit have similarities with the case that Apple faces about unfairly charging developers for made by customers using their apps. It’s an attempt to favor Apple’s app over others.
The cases may take years to resolve, as the tentative date of starting the trial is on September 12, 2023.
