In a high-stakes courtroom battle, Google clashed with the US Justice Department on Friday over allegations of unlawfully scheming to dominate search advertising. The case, unfolding in Washington, holds significant implications for the future of the internet, with District Judge Amit Mehta presiding over closing arguments.
Judge Mehta scrutinized both sides, particularly focusing on whether competitive platforms like TikTok and Facebook can serve as viable substitutes for search advertising dollars. He emphasized the importance of determining platform substitutability, a central issue in the case, before rendering a decision on whether Google’s conduct violated antitrust law.
The government argued that advertising revenue is the driving force behind Google’s monopoly power, alleging that the company lacks real market pressure and can manipulate pricing without fear of losing business. Google’s counsel countered these claims by highlighting the competitive landscape and arguing that Google faces constraints from rival platforms where advertisers can allocate their spending.
John Schmidtlein, representing Google, emphasized the company’s commitment to innovation in search advertising products, challenging the notion that a monopolist would have no incentive to improve its offerings.
The trial, which began on September 12, has seen witnesses from Verizon, Samsung Electronics, and Google itself testify about the company’s dominance in the digital advertising market and its annual payments to ensure its search engine’s default status on smartphones and browsers.
Apart from the antitrust allegations, the government has accused Google of intentionally destroying internal documents relevant to the case. Judge Mehta was poised to address this issue, with the government urging him to presume that Google deleted unfavorable chats. Google defended its data preservation practices as reasonable and urged the court not to sanction the company.
While no oral ruling is expected immediately, the case underscores the broader efforts by US antitrust enforcers to rein in the market power of tech giants. Filed during the Trump administration, this case against Google is the first of five aimed at addressing concerns about the dominance of big-tech companies like Google, Facebook, Amazon, and Apple.