DOJ Takes Aim at Google: Is the Tech Giant a Monopoly?
Google generates over 8.5 billion daily web searches, representing over 90% of worldwide search engine traffic. But with such astonishing figures comes a question: is Google a monopoly?
In January 2023, the Department of Justice filed an antitrust lawsuit against Google for violating Section 2 of the Sherman Act, which prohibits any person or business from "monopolizing, or attempting to monopolize … any part of the trade or commerce among the several States, or with foreign nations.” The DOJ and the attorneys generals of 11 states claim that Google actively prevented its rival search engines from advancing in the market through anti-competitive tactics. One such anti-competitive tactic was entering into exclusionary agreements that allowed Google to dominate the market, lock up distribution channels and block rivals.
So, what do these agreements look like? Google pays billions of dollars each year to distributors, wireless carriers and browser developers such as Apple, LG, Motorola, Samsung, AT&T, T-Mobile, Verizon, Mozilla, Opera and UCWeb to establish default status for its general search engine and in many instances, to explicitly prevent Google’s partners from engaging with its competitors. According to court documents, in 2022 Google paid Apple $20 billion to be the default search engine in Safari on Apple devices. However, these agreements go beyond Apple. Android's contract with Google requires it to feature Google apps in prime locations where consumers are most likely to begin their internet searches. Google requires manufacturers to put the Google search widget on the device’s default home screen, making it the primary search option readily available to users when they first access their phone.
Another anti-competitive tactic Google employs is placing shopping and text advertisements higher on the search results page and pushing organic search results lower down on the screen. This tactic allows Google to dominate the advertising sphere by requiring companies to pay large sums to Google to have their products appear higher up. This tactic detracts from an authentic user experience by placing advertisers ahead of companies that prioritize the quality of their products or services.
Suspiciously, in an evidentiary legal document, Alphabet — Google’s parent company — advises employees on what language to use and to present only third-party data when showing Google’s “position in search” in promotional material. In a document presented in court, an article titled “Five Rules of Thumb For Written Communications,” warned Google employees that “[w]ords matter. Especially in antitrust law.”
Google’s powerful hold on the search engine and information market allows them to sell search and text advertising for large sums. In the United States, advertisers pay about $40 billion annually to place ads in Google’s search engine results. Search engines require complex algorithms that are constantly updating to follow which results and ads best respond to user queries; the more data acquired, the quicker the algorithm can respond to users effectively. Google’s biggest strength is its scale, and by using anti-competitive techniques to lock up large swathes of the market for itself, it unlawfully maintains its monopoly.
The DOJ's stated concern is that “Google will continue executing its anti-competitive strategy, crippling the competitive process, reducing consumer choice, and stifling innovation. American consumers are forced to accept Google’s policies, privacy practices, and use of personal data; and new companies with innovative business models cannot emerge from Google’s long shadow.”
In August 2024, Judge Amit Mehta ruled that Google violated antitrust laws by maintaining a monopoly in online search. In November 2024, the DOJ proposed a framework of remedies to combat the monopoly. The DOJ’s primary goal is to ban Google from forming exclusive agreements with companies like Apple and Samsung and force the search engine giant to sell off its Chrome web browser. While the DOJ believes that breaking off Chrome will increase competition in the browser market and potentially reduce Google's overall search dominance, Google has opposed the recommendation, arguing that it would harm the quality, user privacy and AI advancements of the site.
Although Google has been ruled a monopoly, the future of the tech industry is uncertain. The company’s next steps will play a crucial role in shaping the competitive landscape and influencing how consumers and competitors engage with Google in the future.
Photo Caption: Google Search
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