The U.S. Department of Justice has filed an antitrust lawsuit against Google for using anti-competitive practices in the markets to ensure no competition.
According to the lawsuit’s 64-page written transcript, Google monopolized the search in markets involving advertising and general investigation. It was drafted by U.S. State Attorney General offices representing Georgia, Indiana, Arkansas, Florida, Missouri, Montana, South Carolina, Kentucky, Louisiana, Texas, and Mississippi.
“These search advertising monopoly revenues that Google ‘shares’ with distributors in return for commitments to favor Google’s search engine. These enormous payments create a strong disincentive for distributors to switch. The payments also raise barriers to entry for rivals—particularly for small, innovative search companies that cannot afford to pay a multi-billion-dollar entry fee.”DOJ lawsuit
It was revealed that back then, the company claimed that Microsoft was using the same practices. The difference was the utilization of words and statements to avoid antitrust scrutiny.
Meanwhile, Google responds to the claims of the said report claiming that the lawsuit was deeply flawed.
“People use Google because they choose to—not because they’re forced to or because they can’t find alternatives. Like countless other businesses, we pay to promote our services, just like a cereal brand might pay a supermarket to stock its products at the end of a row or on a shelf at eye level.”Kent Walker, Google’s chief legal officer
Google’s rivals from different states have publicized their complaints against Google due to its unfair dominance that edges out competitors. Criticism against the advertising business and internet search has gone immense.
Due to the increasing number of charges and objections, opponents have formed an industry that convinces regulators to handle the issue.
According to Luther Lowe, the senior vice president of public policy for Yelp, in his interview with CNBC, he had complained to a gathering of attorneys that Google was utilizing its reviews in their products without Yelp’s consent. Google declined to change its scraping content approach.
“In antitrust, your weakness is your strength. It’s sort of the judo of public policy. The A word is the one thing that Google respects. And I think that kind of began our long journey.”Luther Lowe, the senior vice president of public policy for Yelp
Subsequently, related antitrust legal calls and objections from the European Union have concluded in recurring Google penalties.