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WASHINGTON (REUTERS) – The U.S. Department of Justice’s lawsuit against Alphabet Inc’s Google kicks off what is expected to be a lengthy legal battle over whether the online search and advertising company is unfairly using its enormous market power. .
Here are some answers to key questions about the case:
WHAT ARE THE ALLEGATIONS AGAINST GOOGLE?
The Justice Department alleges that Google violated antitrust law to maintain its monopoly on search, where it has about 90 percent of the US market, and two types of advertising: search-based advertising and general search text advertising.
As evidence, the department points to billions of dollars that Google pays to smartphone makers like Apple, Samsung, and others to make Google’s search engine the default on their devices.
As a result, the government argued, smaller search engines never get the scale they need to improve their algorithms and grow.
WHAT REMEDIES DID THE JUSTICE DEPARTMENT REQUEST THAT THE JUDGE IMPOSED?
The Justice Department has wide leeway to request redress and on Tuesday (October 20) said “there was nothing off the table,” including the dissolution of the search and advertising company.
In the “request for redress” of the complaint, the United States seeks “structural redress as necessary to remedy any anti-competitive damage.”
“Structural relief” in antitrust matters generally means the sale of an asset.
He also asked the court to order Google to stop the anti-competitive behavior and pay government costs.
WHAT OTHER ALLEGATIONS HAVE BEEN MADE AGAINST GOOGLE?
In the past, Google has been accused of using its popular search function to favor its products, such as YouTube, as well as large advertisers.
For example, a recent search for a “Saturday Night Live” video resulted in several Google YouTube options before NBC, which produces the show.
Companies like Yelp have argued that they are better than Google at helping consumers find certain services, but that they often appear below a Google recommendation box, resulting in fewer clicks.
Other accusations relate to advertising more broadly. In advertising, Google dominates the interconnected companies that connect advertisers with newspapers, websites and other companies seeking to host them.
Google has been accused of being opaque in disclosing its transaction income, using “bundles” of products to disadvantage smaller rivals and rigging auctions.
WHAT DOES GOOGLE SAY ABOUT THESE ALLEGATIONS?
Google on Tuesday called the lawsuit against the company “deeply flawed” and said that users would find it more difficult to access superior search tools and affordable smartphones if the government wins their case.
As for search, Google has said that users have access to other sources of information, such as Twitter for news and Amazon for products. And he says people use Google to get quick answers, which has prompted the company to develop new ways to organize results.
In terms of advertising, he argues that it competes with a wide variety of companies, including giants such as Oracle Corp and Verizon Communications Inc., and argues that online advertising prices have been steadily declining over the past decade.
As for Android, Google has said that phone makers using its smartphone system don’t have to include Google apps and can pre-install competing apps.
WHAT ROLE DO THE STATE ATTORNEYS GENERAL HAVE?
A large group of attorneys general is also investigating Google, and 11 states joined the Justice Department’s lawsuit on Tuesday.
A group led by Texas is focusing on Google’s advertising practices, while other states are looking at search and Android. These can also result in lawsuits.
HOW LONG WOULD A TRIAL AND APPEALS TAKE?
Google is interested in prolonging the legal fight.
Antitrust experts say it would take at least six to nine months to go to trial, and the decision will be made several months after the trial ends. Then it would probably be appealed.
On Tuesday, Google said it normally takes 12 to 18 months before these cases go to trial.
ARE THE ALLEGATIONS AGAINST GOOGLE POLITICALLY MOTIVATED?
Several lobbyists from the tech trade said the lawsuit was politically motivated.
“The lawsuit was rushed on the eve of an election in which the administration has aggressively lobbied technology companies to take action on their behalf,” the Association of the Computer and Communications Industry said in a statement.
President Donald Trump’s administration has been angered by various Silicon Valley companies for allegedly silencing conservatives, and many Republican lawmakers have raised the issue of bias during recent congressional antitrust hearings.
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