The U.S Justice Department has filed a lawsuit against Google for antitrust violations, alleging that it abused its dominance in online search and advertising to stifle competition and harm consumers.
“Google is the gateway to the internet and a search advertising behemoth,” U.S. Deputy Attorney General Jeff Rosen told reporters. “It has maintained its monopoly power through exclusionary practices that are harmful to competition.”
Antitrust cases in the technology industry have to move quickly, he said. Otherwise “we could lose the next wave of innovation.”
The lawsuit marks the government’s most significant attempt to protect competition since its groundbreaking case against Microsoft over two decades ago.
Thus could be the beginning of other major government antitrust actions due to ongoing investigations of major tech companies including Apple, Amazon and Facebook at both the Justice Department and the Federal Trade Commission.
U.S Lawmakers and consumer advocates have long accused Google, whose corporate parent Alphabet Inc. has a market value just over $1 trillion, of abusing its dominance in online search and advertising to stifle competition and boost its profits. Critics contend that multibillion-dollar fines and mandated changes in Google’s practices imposed by European regulators in recent years weren’t severe enough and that structural changes are needed for Google to change its conduct.
Google responded immediately via tweet: “Today’s lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to — not because they’re forced to or because they can’t find alternatives.” Source: AP
Today’s lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to — not because they're forced to or because they can't find alternatives. We will have a full statement this morning.
— Google Public Policy (@googlepubpolicy) October 20, 2020