US justice department accuses Google of paying billions annually to illegally remain top search engine

US justice department accuses Google of paying billions annually to illegally remain top search engine

Google pays billions of dollars each year to Apple Inc., Samsung Electronics Co., and other telecom giants to illegally maintain its spot as the No. 1 search engine, the US Justice Department told a federal judge Thursday.

During a hearing in Washington, which marked the first major face-off in the case, Dintzer told Judge Amit Mehta “Google invests billions in defaults, knowing people won’t change them.” “They are buying default exclusivity because defaults matter a lot,” he added.

The company’s contracts form the basis of the DOJ’s landmark antitrust lawsuit

Google’s contracts form the basis of the DOJ’s landmark antitrust lawsuit, which alleges the company has sought to maintain its online search monopoly in violation of antitrust laws. State attorneys general are pursuing a parallel antitrust suit against the search giant, also pending before Mehta. (https://nelsonjsalon.com/)

Before Facebook’s parent company Meta, state attorneys general are pursuing a parallel antitrust suit against the search giant. The federal government’s first major effort to rein in the power of the tech giants was filed in the waning days of the Trump administration. Hosting a roundtable with experts to explore the harm major tech platforms can wreak on the economy and children’s health, the White House outlined six principles to reform Big Tech platforms.’

Google faces competition from dozens of companies

Google’s attorney John Schmidtlein said the DOJ and states misunderstand the market and focus too narrowly on smaller search engine rivals like Microsoft Corp.’s Bing and DuckDuckGo. Instead, Google faces competition from dozens of other companies, he said, including ByteDance Ltd.’s TikTok, Meta Platforms Inc., Amazon.com Inc., Grubhub Inc., and additional sites where consumers go to search for information.

“You don’t have to go to Google to shop on Amazon. You don’t have to go to Google to buy plane tickets on Expedia,” he said. “The fact that Google doesn’t face the same competition on every query doesn’t mean the company doesn’t face tough competition.”

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