Overview of the Antitrust Case
On October 20, 2020, the United States Department of Justice (DOJ) filed a civil antitrust lawsuit against Google LLC along with eleven state Attorneys Generals. The DOJ alleged that Google maintained an illegal monopoly in the search and search advertising markets through exclusionary agreements and other anticompetitive practices, which harmed competition and consumers. [1]
Source: Statcounter
To support their claim, the DOJ pointed to Google’s control of ~88% of the domestic search engine market. Further, Google maintained control of over 70% of the search advertising market, which allowed Google to over-charge advertisers versus what they would have paid in a competitive environment. [2]
Former CEO of Google and Alphabet Inc., Eric Schmidt, responded to the DOJ stating “there’s a difference between dominance and excellence.” [3] Furthermore, Google publicly stated on Twitter that the lawsuit by “the Department of Justice is deeply flawed,” as “People use Google because they choose to – not because they’re forced to or because they can’t find alternatives.” [4]
What is more impressive, however, is that both sides of the political spectrum supported filing this lawsuit. Most famously, Senator Elizabeth Warren (D-MA) and Ted Cruz (R-TX) spoke about this publicly, supporting the Government’s claims. However, some political figures - including Rep. Steve Cohen - criticized the timing of the case as being filed weeks before the 2020 presidential election.
Overall, what plays out in the Google case will certainly be interesting. Moreover, it'll set a precedent that revises decades of antitrust SCOTUS rulings.