In a significant tech monopoly case reminiscent of Microsoft’s legal battle nearly a quarter of a century ago, Google is currently being sued by the US Justice Department under the same 19th-century law used against Microsoft. Prosecutors allege that Google employed illicit arrangements to exclude competitors from its search engine, solidifying its commanding presence on the web. While the Justice Department seeks to compel Google to cease such practices, the outcome could potentially involve the company’s breakup.
Google’s search engine, which accounts for approximately 90 percent of US search queries, is facing an unusual challenge from artificial intelligence chatbots that offer succinct answers instead of the traditional link-based search results. This case underscores a transformative period in the tech industry, where even tech giants like Google confront shifts in the digital landscape.
This lawsuit marks the culmination of more than a decade of escalating regulatory pressure on Google, which recently marked its 25th anniversary. The European Union has repeatedly fined the company and mandated changes to its various services, ranging from price comparison platforms to Android phone software and online advertising. The UK’s competition regulator has initiated multiple investigations into Google, leading to modifications in its web browser.
At the core of the US case is Google’s dominant position in search, primarily due to exclusivity agreements it established with phone manufacturers and software providers. A particularly scrutinized deal is Google’s agreement with Apple to serve as the default search engine on iPhones, believed to be worth up to $15 billion annually. This arrangement has raised concerns that it stifles competition and contributes to Google’s overwhelming control.
While the Justice Department’s case against Google is underway, the outcome remains uncertain. Recent regulatory attempts to curtail major tech acquisitions have faced legal challenges, and even settlements have remained confidential. Nevertheless, the public spotlight on the trial and the impact on day-to-day operations may prove to be a form of punishment, irrespective of the verdict.
Additionally, Google faces a new challenge from AI, with its search engine encountering a growing threat from AI-powered chatbots like ChatGPT. The company has initiated an internal “code red” response to this development, signaling the potential erosion of its dominance. Many AI experts have left the company, citing a stifling culture that hinders innovation.
While the outcome of the US legal battle remains uncertain, it signifies a pivotal moment for Google and the broader tech industry, with potential long-lasting consequences for the company’s operations and competitive landscape.
