
In 1998, the US Department of Justice sued Microsoft, alleging that the company had abused its monopoly over personal computing by forcing users of its Windows operating system to adopt Internet Explorer as their browser, among other things. In 2001, the two sides settled the case. The government initially asked for Microsoft to be broken up. That outcome was overturned on appeal, but some experts argued that the glare of the legal spotlight nonetheless slowed Microsoft down in key ways. These, in turn, allowed an upstart named Google—founded a month before the trial was launched—to eventually dominate the internet search market.
Two decades later, Google is ten times the size that Microsoft was in the nineties, with a market value of almost two trillion dollars and control over more than 90 percent of online search and related advertising. On Tuesday, the first major antitrust case since the Microsoft trial got underway in a DC courtroom—with Google in the role of defendant. The Justice Department intends to prove that Google has misused its search monopoly to harm its competitors and that it has maintained that monopoly through illegal means, such as paying smartphone companies like Apple billions of dollars to make Google the default search engine on their products. (Google’s dominance in advertising is the subject of a separate lawsuit that has yet to reach trial.) Kenneth Dintzer, a Justice Department lawyer, opened by arguing that Google viewed these default search deals as a “powerful strategic weapon” to cut out rivals. The resulting feedback loop, Dintzer argued, is a wheel that has been turning for more than twelve years, always “to Google’s advantage.”
Google’s lawyer hit back, arguing that “users today have more search options and more ways to access information online than ever before.” The crux of the company’s defense was outlined in a pretrial filing arguing that the Justice Department has defined the search market too narrowly, that Google doesn’t have a monopoly (which it defines as “the ability to raise prices beyond a competitive level”), and that its dominance in that market actually helps consumers. According to Google, its status as the default browser on products like Apple’s did not result from massive payments but because Google “successfully competed on the merits—that is, on the basis of product quality and price.” Breaking up the company, or forcing it to divest itself of certain software operations, would make the global technology landscape poorer for everyone, Google says. The trial continues, and could take as long as ten weeks to conclude.
Note: This was originally published as the daily newsletter for the Columbia Journalism Review, where I am the chief digital writer
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