US justice accuses Google of spending billions to be outlawed


Alexander Boero

September 12, 2022 at 11:10 a.m.

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Google would pay billions of dollars each year to certain Tech giants (Apple, Samsung) to illegally maintain its position as number 1 in search engine.

The DOJ, or United States Department of Justice, revealed a few days ago that it had filed an antitrust complaint against Google shortly before the end of the Trump administration, about the financial mechanism set up by the Mountain View firm to maintain its leadership position search. Our colleagues from Bloomberg explain that the Biden administration has in turn seized on this affair, which could deprive companies like Apple or Samsung of billions of dollars in revenue.

Google, bait to reign better?

What’s going on between Google, Apple, Samsung and other tech behemoths? The American justice affirms before the federal judge in Washington that the Mountain View firm pays these companies, sometimes competitors, billions of dollars to maintain its number one position, putting itself outlawed according to it.

DOJ attorney Kenneth Dintzer declined to state at the hearing exactly how much Google spends to ensure ” to buy the exclusivity by default on many devices, ” knowing that people won’t change it “. Because indeed, Google finds itself in the position of search engine by default on many American devices.

The US Department of Justice refers to ” huge numbers and accuses Google of violating the country’s antitrust laws.

For Google, the American justice system underestimates the “search” potential of some of its competitors

Google’s lawyer, John Schmidtlein, considers that the American justice system and the federated states are struggling to understand the market by perhaps focusing a little too much on Bing or DuckDuckGo, smaller search engines. The lawyer tried to educate the judge, explaining to him that Google must face competition from other large companies and platforms, such as TikTok (ByteDance), Meta (Facebook), Amazon, Grubhub (meal delivery platform), which are also used as search engines by their users.

You don’t need to go to Google to shop on Amazon. You also don’t have to go to Google to buy plane tickets on Expedia. “, did he declare. ” Just because Google doesn’t face the same competition for every query doesn’t mean the company doesn’t face fierce competition. “.

Despite this, the Department of Justice considers that the contracts signed by Google with Apple, Samsung, Motorola as well as the American telecom operators AT&T, Verizon and T-Mobile to ensure default promotion of its search engine, are sufficient to hinder the potential progress of his rivals. Case to follow.

Source : Bloomberg



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