Last month, Google was hit with a significant ruling in an antitrust case involving its dominance in the search business: A federal judge in the District of Columbia ruled that the payments that Google makes to Apple and other companies in return for being the default search engine — payments that totaled more than $20 billion dollars last year — are an unfair restraint on competition. Judge Mehta found that Google controls almost 90 percent of the search market, a figure that rises to nearly 95 percent for mobile devices, and that the company has used its monopoly to charge higher prices. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Mehta wrote.
Less than a month later, Google is in court for a second antitrust trial, this one involving its control over online advertising. The case was launched in January of 2023 by the Department of Justice and eight states, including New York, New Jersey, and California (nine more states joined later). It states that Google “corrupted legitimate competition in the ad tech industry by engaging in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers and brokers to facilitate digital advertising.” The government concluded its main arguments last week and asked the court to force Google to sell off some of its ad technology.
Google deserves to lose
Predicting the outcome of this kind of trial is difficult at the best of times, but this one is especially difficult for a couple of reasons, including the fact that the way the courts interpret antitrust law is a moving target, combined with the reality that the online ad market is a complex animal — so complex that it makes online search look like a kid’s birthday party. That gives Google a lot of wiggle room to argue that it doesn’t have a monopoly in the legal sense of the word, and that even if it does, it hasn’t done anything anticompetitive to maintain that monopoly (simply having a monopoly is not illegal under US antitrust law — the government has to show that a company obtained the monopoly through illegal means, and/or used illegal methods to maintain it.)
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