U.S. Blasts Google for Overpaying $10 Billion a Year to Cut Out Search Rivals | The New York Times
The US government has accused Google of paying $10 billion annually to maintain its monopoly over online search, marking a significant antitrust trial’s opening day. Justice Department lawyer Kenneth Dintzer argued that the trial’s outcome would determine whether Google would face genuine competition in the search industry. Google’s defense contends that its search engine’s success results from quality and continuous innovation.
The trial, held in Washington, represents the first time US prosecutors have challenged a major tech firm since Microsoft’s antitrust case two decades ago. The case revolves around allegations that Google gained its online search dominance by securing exclusivity contracts with device manufacturers, mobile operators, and other entities, effectively stifling competition. It was revealed that Google pays $10 billion annually to secure its search engine’s default status on phones and web browsers, further consolidating its dominance by accessing user data that competitors couldn’t match.
Google’s parent company, Alphabet, significantly relies on search ads for revenue, generating nearly 60% of its income. The case’s primary victims are rival search engines like Microsoft’s Bing and DuckDuckGo, struggling to gain a significant market share against Google’s 90% global search engine market dominance.
Judge Amit P. Mehta is expected to deliver a ruling months after the trial concludes. The outcome may involve drastic measures, such as breaking up Google’s businesses or altering its operations. Regardless of the verdict, both sides are likely to appeal, potentially prolonging the case for years, reminiscent of the Microsoft antitrust case that ultimately ended in a settlement in 2001.
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