Mon Oct 26 2020
DoJ alleges Google spending Billions of dollars to make sure they stay top
The US Department of Justice (DOJ) has hit Google with an antitrust suit, alleging the search engine company is spending billions to ensure their platform is the default choice on different devices.
The long-expected suit came down last week, alleging that Google has been using anticompetitive search and advertising practices that violate US Federal law. The DoJ’s concern is that consumers are being hurt by other search engines being unable to establish a foothold in the market.
As part of their suit, they’ve asked the court to consider ‘structural relief’ which would force Google to sell a portion of its business as well cease and desist all practices that regulators found to be unlawful.
Absent a court order, Google will continue executing its anticompetitive strategy, crippling the competitive process, reducing consumer choice, and stifling innovation. For the sake of American consumers, advertisers, and all companies now reliant on the internet economy, the time has come to stop Google's anticompetitive conduct and restore competition.
The US Justice Department is convinced that Google’s current practices are helping it to preserve a monopoly on both search and PPC ad related business.
In the US nearly 80% of web searches are conducted through Google, with that figure being higher if only smartphones are counted.
The DoJ feel that’s because Google has, over the last few years, spent billions in ensuring it’s search engine is the default browser of choice on mobile devices and laptops.
The antitrust suit also alleges that Google has been using cash reserves from its parent company Alphabet to pay mobile and computer device manufacturers to maintain this status quo.
In response to the allegations Goole have stated:
People use Google because they choose to, not because they're forced to, or because they can't find alternatives. This lawsuit would do nothing to help consumers. To the contrary, it would artificially prop up lower-quality search alternatives, raise phone prices, and make it harder for people to get the search services they want to use. The lawsuit, if successful, would result in higher prices for users, as Google would be compelled to increase the cost of its mobile hardware and software.
The DoJ’s suit has come after the US House Judiciary Committee's Antitrust Subcommittee released a report earlier this month stating that huge tech companies like Google, Apple, Facebook and Amazon are monopolies that need to be broken up to restore competition and improve innovation within the sector.
Mon Oct 26 2020