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"Justice Department to file landmark antitrust case against Google
The Justice Department is expected to file a lawsuit Tuesday alleging that Google has been abusing its dominance in online search to stifle competition and harm consumers, a person familiar with the matter told the Associated Press.
The litigation marks the government’s most significant act to protect fair competition since its groundbreaking case against Microsoft more than 20 years ago. The suit could be an opening salvo ahead of other major government antitrust actions, given ongoing investigations of major tech companies, including Apple, Amazon and Facebook, by both the Justice Department and the Federal Trade Commission.
Lawmakers and consumer advocates have long accused Google, whose corporate parent, Alphabet, has a market value of just over $1 trillion, of abusing its dominance in online search and advertising to stifle competition and boost its profits. Critics contend that multibillion-dollar fines and mandated changes in Google’s practices imposed by European regulators in recent years weren’t severe enough and that structural changes are needed for Google to change its conduct.
The case is expected to be filed in federal court in Washington. Besides abuse of its dominance in online search, the suit will also allege that Google uses billions collected from advertisers to pay phone manufacturers to ensure that Google is the default search engine on browsers, the person familiar with the matter told the AP. The person could not discuss the matter publicly before a formal announcement expected later Tuesday morning and spoke on the condition of anonymity.
The Trump administration has long had Google in its sights. A top economic advisor to President Trump said two years ago that the White House was considering whether Google searches should be subject to government regulation. Trump himself has often criticized Google, recycling unfounded claims by conservatives that the search giant is biased against conservatives and suppresses their viewpoints, interferes with U.S. elections and prefers working with the Chinese military over the Pentagon.
Google accounts for about 90% of global web searches. The company has been bracing for the government’s action and is expected to fiercely oppose any attempt to force it to spin off its services into separate businesses.
The company, based in Mountain View, Calif., has long denied claims of unfair competition. Google argues that although its businesses are large, they are useful and beneficial to consumers. It maintains that its services face ample competition and have unleashed innovations that help people manage their lives.
Most of its services are offered for free in exchange for personal information that helps Google sell its ads. Google insists that it holds no special power to force people to use its free services or prevent them from going elsewhere.
AG Barr's statement:
Statement of the Attorney General on the Announcement Of Civil Antitrust Lawsuit Filed Against Google
Attorney General William P. Barr released the following statement:
“This morning the Department of Justice, along with eleven states, filed a civil lawsuit against Google for unlawfully maintaining a monopoly in general search services and search advertising in violation of the U.S. antitrust laws. This is a monumental case for the Department of Justice and, more importantly, for the American consumer.
Today, millions of Americans rely on the Internet and online platforms for their daily lives. For years, there have been broad, bipartisan concerns about business practices leading to massive concentrations of economic power in our digital economy. Hearing those concerns, I have made it a primary commitment of my tenure as Attorney General for the Department of Justice to examine whether technology markets have been deprived of free, fair, and open competition.
To that end, the Department of Justice formally opened a review of online market-leading platforms in July 2019. One part of this review is the Antitrust Division’s investigation of Google. Over the course of the last 16 months, the Antitrust Division collected convincing evidence that Google no longer competes only on the merits but instead uses its monopoly power – and billions in monopoly profits – to lock up key pathways to search on mobile phones, browsers, and next generation devices, depriving rivals of distribution and scale. The end result is that no one can feasibly challenge Google’s dominance in search and search advertising.
This lack of competition harms users, advertisers, and small businesses in the form of fewer choices, reduced quality (including on metrics like privacy), higher advertising prices, and less innovation.
The complaint filed today against Google is based on violations of the U.S. antitrust laws and is separate and distinct from concerns raised about content moderation and political censorship by online platforms. As part of the Department’s broader review of market-leading online platforms, we listened to myriad public concerns about how online platforms fail their users. While many of the concerns we heard were competition-related, others were not – like online child exploitation, public safety, and censorship. Outside the Antitrust Division, the Department has considered these issues separately, including by advocating for Section 230 legislative reforms. Our antitrust investigation of Google, by contrast, is based solely on traditional antitrust principles and is aimed at promoting consumer welfare through robust competition.
Twenty-five years ago, the Department of Justice sued Microsoft, paving the way for a new wave of innovative tech companies – including Google. The increased competition following the Microsoft case enabled Google to grow from a small start-up to an Internet behemoth. Unfortunately, once Google itself gained dominance, it resorted to the same anticompetitive playbook. If we let Google continue its anticompetitive ways, we will lose the next wave of innovators and Americans may never get to benefit from the “next Google.” The time has come to restore competition to this vital industry.
Today’s challenge against Google – the monopoly gatekeeper of the Internet – shows the tremendous efforts of the Department, in particular the hardworking men and women of the Antitrust Division, and our state partners to restore competition in markets beholden to an unlawful monopolist. This is an important milestone, but not the end of our review of market-leading online platforms. The Department will continue to vigorously investigate and enforce the antitrust laws where appropriate to protect and promote competition in the digital economy for the benefit of the American consumer.”
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