Trial on Google's Antitrust Law Violation Charges
The Largest Case Since Microsoft's Antitrust Lawsuit
Ruling on Meta Expected This Year
Historically, US Antitrust Law Has Shaken Corporate Destinies
This year, the Wall Street Journal (WSJ) reported on the 1st (local time) that antitrust rulings could be issued against big tech companies Google and Meta Platforms. In particular, the trial concerning Google's 'search market monopoly' is drawing attention as the biggest case in over 20 years since the U.S. government sued Microsoft (MS) in 1998 for dominating the browser market through the Windows operating system.
The U.S. Department of Justice filed a lawsuit in October 2020, claiming that "Google abused its dominant position in the search market." Google allegedly secured 90% of the U.S. search engine market by having smartphone manufacturers like Apple pre-install Google apps as the default search engine. The case only went to trial in September last year, three years after the lawsuit was filed, and both sides engaged in intense legal battles. The Department of Justice stated, "Google spends $10 billion annually to maintain its position as the default search engine." Google countered, saying, "This is compensation for partners' software updates," and argued that "its search engine is dominant because it produces the most relevant search results." They also emphasized that the top search term on MS's search service 'Bing' is 'Google.'
The trial lasted about two months, and in November last year, U.S. District Judge Amit Mehta said he was "unsure how to rule" on the key question of whether Google violated antitrust laws. The final arguments in the case are scheduled for May. WSJ predicted that "a ruling could come by the end of 2024."
Google is also preparing for a trial regarding the Department of Justice's claim that it violated antitrust laws in the digital advertising sector and is demanding the sale of its ad exchange. The market share of 'DoubleClick,' an advertising technology company acquired by Google in 2008, reaches 90%. Leonie Brinkema, a judge at the Alexandria District Court in Virginia, stated, "A trial date could be announced as early as early March."
Meanwhile, WSJ reported that a major antitrust case involving Meta is also expected to be decided this year. Meta was sued by the Federal Trade Commission (FTC) in December 2020 on charges of abusing monopoly power by acquiring social media competitors such as Instagram and WhatsApp to eliminate competition.
U.S. antitrust laws are among the most powerful laws that can shake the fate of companies. U.S. courts have taken strong measures such as breaking up companies that hinder fair market competition through monopolies. A representative case where antitrust laws exerted strong power was the breakup of Standard Oil, which held 90% of the U.S. oil market, into 38 companies including Exxon, Mobil, and Chevron in 1911.
However, just as Microsoft, sued in 1998 for blocking market competition by bundling its web browser 'Internet Explorer' with Windows, resolved its antitrust case by changing its business operations rather than splitting the company, there are considerable criticisms that it is ambiguous to regulate internet companies that emerged after the 1990s from a traditional perspective. WSJ stated, "Some legal experts believe that even if Google loses, the court is unlikely to force Google to sell parts of its business."
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