The Case Of Justified Monopoly - Google's Antitrust Lawsuit

Google (GOOG) has been facing a lot of backlash from state regulators concerning its monopoly over search engines. A month ago Google received several antitrust lawsuits from the justice department as they alleged that the tech giant is maintaining this monopoly unlawfully and not allowing room for competition. And several states like Missouri, Kentucky, Indiana, Georgia, Arkansas, Florida, Louisiana, Montana, Mississippi, Texas, and South Carolina, chimed in as plaintiffs in the case. This lawsuit is a result of a one-year investigation into the business practices of the company. 

This has only gotten worse as more groups are planning to file the same antitrust lawsuits against the company as well according to some individuals who were briefed on the matter, and it is said that this group is expected to be more than the previous one headed by Texas. Liberal groups from states such as Iowa, Colorado, New York, Nebraska, Tennessee, North Carolina, and Utah have expressed their wish to add their case to the Federal government. 

Photo by Benjamin Dada on Unsplash

In response to all the ongoing lawsuits from the state, Google has spoken up denying wrongdoing, saying that they have been conducting their business in good faith. And that their company is so influential because users and other institutions prefer to use them.

It is said that this new group plan to file their case in December and one of the individuals briefed on the case said that the federal district court expected the filing. The first group which was led by Texas announced their investigation against Google in 2019 with several attorney generals from all 50 states. And a year later the state is leading investigations on an online forum that does tech advertisement while the second group led by Nebraska and Colorado are opting for a more thorough investigation. Although this seems to be going on smoothly, things might be slowed down a little bit for Texas since the attorney general's office is facing a lot of challenges at the moment.

According to sources, Attorney General Ken Paxton is investigated by the FBI on the accusation of abusing his office to help politicians who made donations to him. The truth of the matter is that even Paxton’s aides were fired or resigned because they had become whistleblowers. This also included certain individuals who were vital in the investigation against Google.

What to make of this

Texas in an effort to keep the case going and to avoid the turmoil in the attorney general’s office is already looking into replacements. The candidate catching the attention of the state is the deputy attorney general for civil litigation, Shawn Cowles. But this is still not stopping the delays either. At this moment no comments have been made by the attorney general’s office. The Justice Department lawsuit against Google was fairly small, and the investigation only into Google’s efforts to continue to build and remain dominant in the industry but the Colorado/Nebraska group’s investigation is broader.

Popular opinion is of the fact that Google is monopolizing the search engine business, giving room for no competition in the industry. Several companies have been rendered obsolete due to Google’s dominance as a tech giant. Although Google has vehemently denied all the claims, it is alleged that Google pays the companies to prioritize their search engine products which puts them at the center of most consumer searches. This marks the biggest antitrust lawsuit ever and it is expected to go on for several years. 

However, for the US Department of Justice to win this case, they have to prove that Google maintained or gained their monopoly through unlawful practices or something beyond good faith or fair competition. Experts say that Google’s popularity makes the case more likely to be linked to whether its dominance comes from user reference or whether Google steered consumers away from other companies. However, the justice department is also bent on proving their case. And it is said that pressure will be mounted on the Biden administration to ensure that Google is relieved of some of the powers it currently holds in this business sector. This is definitely going to be a tough nut to crack especially dealing with such a big tech company.

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William K. 3 years ago Member's comment

Wealth certainly can buy power, and certainly Google has the wealth to buy as much power as it wants to have. The fact is that size and wealth do provide power. And certainly, just like microsoft did, Google has paved it's way very well. Lower pricing and preferred placement "somehow" are provided, and amazingly enough, always allow it the benefit.

Of course, with Google the other thing is that privacy is gone, long gone, and will probably only return with the collapse of the internet.

Of course Google will win, since it has far more money than the state of Texas to spend.

Is this a god outcome? No, it is not.