The US Department of Justice has filed its long-awaited competition case against Google, with the backing of public prosecutors from 11 states. The lawsuit alleges the internet giant unlawfully maintained a monopoly in the search and search advertising markets by entering deals with device manufacturers to make Google the default or exclusive search engine installed on mobile phones and computers.
Google accounts for nearly 90 percent of search queries in the US. The DoJ cited its previous case against Microsoft in 1998 over bundling Internet Explorer with Windows computers as an example of the type of unlawful behaviour involved. That case established that US antitrust laws forbid anticompetitive agreements to require preinstalled default status, to shut off distribution channels to rivals, and to make software undeletable. The new case alleges that Google is using similar agreements to maintain and extend its own monopoly in the search market.
Self-reinforcing cycle of monopolization
The alleged competition violations include entering into exclusivity agreements that forbid pre-installation of any competing search service on devices, tying and other arrangements that force device makers to pre-install Google search applications in prime locations on mobile devices and make them undeletable, and long-term agreements with Apple that require Google to be the default general search engine on the Safari browser and other Apple search tools. Furthermore, Google generally uses its profits to buy preferential treatment for its search engine on devices, web browsers and other search access points, creating a continuous and self-reinforcing cycle of monopolization, the DoJ said in a statement.
Google disagrees
Google called the lawsuit "deeply flawed", saying the case "would do nothing to help consumers". According to a statement from Google's chief legal officer Kent Walker, "people use Google because they choose to, not because they're forced to, or because they can't find alternatives". He said Google's agreements with device makers are common in the software market and similar to a cereal brand paying for a preferred spot on a supermarket shelf.
A blog post by Walker outlined how users can choose different search options on Apple, Samsung and Microsoft devices, noting it's "trivially easy" to choose another search engine even on Google's own Chrome browser. Walker noted further that Google competes not just with search engines, but also other apps offering new ways of searching for information, such as Twitter, Kayak or Pinterest.
His response points to Google fighting the lawsuit in court. "We’re confident that a court will conclude that this suit doesn’t square with either the facts or the law," Walker said.
Browser choice
Google has faced similar accusations in other countries, including Korea, Turkey, Russia and the European Union, which in some cases led to large fines for competition violations. These cases focused more on the company's control of the Android operating system and how it used that to favour its own search services. Competition investigations in the EU and Russia resulted in Google being forced to offer Android users a choice of search engine, similar to Microsoft's obligation on the Windows market for a choice of web browser.
