Google Antitrust Trial Begins

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Facts

  • The landmark antitrust trial against Google opened Tuesday in Washington, DC — the largest US antitrust trial in decades.1
  • The US Dept. of Justice (DOJ) has accused Google of paying leading device manufacturers, wireless phone providers, and web browser developers $10B per year to keep its search engine as their default option in an effort to maintain Google’s approximate 90% market share.2
  • Prosecutors say Google’s payments to companies — including Apple, Samsung, AT&T, and Mozilla — have given it an unfair advantage because “Google’s contracts ensure that rivals cannot match the search quality and ad monetization” and have given Google an advantage for more than 12 years.3
  • Google says that its superior search engine is the leading driver of its success and is responsible for Windows PC users preferring Google to the competition — including the pre-installed Bing browser.4
  • The 10-week trial will be heard in front of Judge Amit Mehta and will feature testimony from top executives at Google and its parent company, Alphabet, as well as Eddie Cue, a high-ranking Apple executive.3

Sources: 1CBS, 2Reuters, 3Associated Press and 4BBC News.

Narratives

  • Narrative A, as provided by USA Today. The DOJ’s case against Google is an attack on consumer preferences rather than an attempt to end monopolies. Overwhelming evidence shows most people prefer Google’s search engine whether or not it's the default option on their devices. Google uses its customer data to create the best product possible, and cracking down on that practice will lead to worse products and services.
  • Narrative B, as provided by New Yorker. Google is a monopoly, allowing it to obtain an unimaginable level of user data, and something must be done to increase competition. The DOJ must press this case in order to make sure powerful industry leaders can’t freeze out competition. Google has abused its power and wealth for far too long.

Predictions