US Files Antitrust Lawsuit Against Google... Regulating the IT Giant (Comprehensive)

"Pre-installing Own Apps, Abusing Monopoly to Capture 80% of Search Market"
Focus on Whether Apple, Amazon, Facebook, etc. Will Expand

The Google-owned building where Chelsea Market, a famous spot in New York, is located.
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. federal government has filed an antitrust lawsuit against Google, the world's largest search engine. The reason is that Google allegedly used its monopolistic position in the search market to hinder competition. There is growing weight to the possibility that this could expand to other IT giants depending on the outcome of the lawsuit at the government level.

On the 20th (local time), the U.S. Department of Justice filed a complaint in the Washington D.C. federal court, alleging that Google engaged in unfair practices by using its monopolistic market position in the search and search advertising markets. Related article on page 3.

In the complaint, the Department of Justice claimed, "Google has used anti-competitive tactics to maintain and expand its monopoly in general search services and search advertising." It stated that Google paid billions of dollars to smartphone manufacturers such as Apple and telecom companies to pre-install its applications like YouTube, Gmail, and Chrome on smartphones, and through revenue-sharing agreements, hindered the pre-installation of other apps. The Department of Justice also specified that Google paid Apple to make Google Search the default on Apple's Safari browser.

The Department of Justice pointed out that Google made its search engine the default on smartphones, raising its market share in the search market to 80%, effectively making competition impossible and limiting consumers' choices.

Jeffrey Rosen, Deputy Attorney General of the Department of Justice, emphasized, "If the government does not enforce antitrust laws that enable competition, we may lose the next wave of innovation. Americans might never see the 'next' Google."

Google criticized the antitrust lawsuit filed by the Department of Justice as "fundamentally flawed." A Google spokesperson argued, "Consumers are not forced to use Google nor do they use Google because there are no alternatives," adding, "Using Google is a choice made by consumers."

Since July last year, the U.S. Department of Justice has launched antitrust investigations into major IT companies including Google, Facebook, Amazon, and Apple. Not only the government but also Congress is scrutinizing the monopoly issues of major IT companies. Recently, the House Judiciary Committee's Antitrust Subcommittee released a report stating that Amazon, Apple, Facebook, and Google have engaged in anti-competitive activities and abused their market dominance.

U.S. media are also paying close attention to this move. The New York Times (NYT) forecasted, "This lawsuit is a significant challenge to the market dominance of tech companies, and depending on the outcome, it could change the internet economy and how consumers use the internet."