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HomeNewsBusinessUS government sues Google: Here's all you need to know about the antitrust case

US government sues Google: Here's all you need to know about the antitrust case

In a 64-page complaint filed by the US Justice Department and 11 states, California-based Google was accused of abusing its dominance in internet search and advertising.

October 21, 2020 / 16:38 IST

Internet giant Google, owned by Alphabet, is facing a legal battle in the United States, where it has come under fire for alleged monopolistic practices to maintain its influence in the market.

In a 64-page complaint filed by the US Justice Department and 11 states, California-based Google was accused of abusing its dominance in internet search and advertising.

"Competition in this industry is vitally important, which is why today’s challenge against Google — the gatekeeper of the Internet — for violating antitrust laws is a monumental case both for the Department of Justice and for the American people," Attorney General William Barr was quoted as saying by Reuters.

This is the biggest move by US lawmakers against a major technology company, after Microsoft was also accused of anti-competitive practices in 1998.

Facebook, Amazon and Apple are also facing scrutiny by Congress for alleged antitrust violations.

What does the lawsuit say about Google?

The lawsuit alleged that Google paid Apple billions of dollars to be the default search engine on the iPhone and other devices made by the company.

Google was also accused of distribution agreements designed to help retain its pre-eminence in the market.

"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," Barr said, according to the report.

"The end result is that no one can feasibly challenge Google’s dominance in search and search advertising," he added.

Potential breakup of Google

The US Justice Department has not ruled out a breakup of the $1 trillion company.

"Nothing is off the table, but a question of remedies is best addressed by the court after it's had a chance to hear all the evidence," the report quoted Ryan Shores, a Justice Department official, as saying.

It will be a long time, maybe  even years, before the outcome of the litigation is known.

Not the first legal battle for Google

Google has faced previously antitrust litigation in Europe. The company is challenging a 2.4-billion-euro fine slapped on it by the European Commission, due to anti-competitive practices in its shopping service.

The European Commission also fined Google blocking rival online search advertisers, and using the Android software, which it owns and distributes, to promote its own apps.

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Moneycontrol News
first published: Oct 21, 2020 04:38 pm

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