Is Google a Monopoly? The Federal Government Thinks So.

How often do you question the world around you and think, “I’ll just Google it?”

For most Americans, the answer is “most of the time.” That’s because Google is responsible for processing about 90 percent of all internet search queries in the United States — something the federal government doesn’t like. (READ MORE from Aubrey Gulick: Too Little Too Late?: Biden Administration Bans Investment in Chinese Quantum Computing)

In 2020, the Department of Justice filed an antitrust lawsuit under the 1890 Sherman Antitrust Act against Google, alleging that its growth into a practical monopoly was no accident but, rather, the result of illegal actions that have ultimately harmed every American consumer who has ever purchased an iPhone or Android device.

This week, U.S. et al. v. Google has finally made its way to the courts. The trial, presided over by U.S. District Judge Amit Mehta, opened on Tuesday.

Google: Our Customers Just Like Us

The lawsuit claims that Google has deals with Android and Apple to ensure its search engine is preinstalled on all devices. The behemoth search engine and its parent company, Alphabet, plan on countering that Google doesn’t have a monopoly and that it faces stiff competition from organizations like Microsoft and Amazon.

Kent Walker, president of global affairs at Google and Alphabet, argues on Google’s blog that “our Search distribution agreements reflect choices by browsers and device makers based on the quality of our services and the preferences of consumers…. In sum, people don’t use Google because they have to — they use it because they want to.” (READ MORE: Biden’s FTC Trades Consumer Welfare for Socialism)

Walker demonstrates that changing which search engine consumers use is fairly easy — it takes just two clicks on a Mac and four clicks on an iPhone. The process is similarly easy on an Android device.

In response to allegations that Google’s actions have severely limited competition in the United States, Walker claims the lawsuit simply ignores how competitive the tech industry currently is — not to mention the fact that his organization is currently investing billions of dollars into research and development.

“We put people first,” he writes, “and focus on getting them the services they need to find high-quality information easily and quickly.”

Federal Government: Google Is Stifling Competition

When the trial opened on Tuesday, U.S. prosecutors told Mehta that Google has “intentionally stifled competition challenging its massive search engine,” according to CNN Business. They accused the company of “spending billions to operate an illegal monopoly that has harmed every computer and mobile device user in the United States.”

The federal government recognizes that Google is the preeminent search engine, and, as such, it considers Google the internet’s gatekeeper. According to the pretrial brief, “Google stands astride the most important entrance to the Internet, maintaining its search-related monopolies at the expense of people who use general search engines every day and the companies that pay to advertise on Google.” (RELATED: VIDEO: Iowa Farmers Say China Is Stealing US Seeds)

The DOJ isn’t arguing that Google doesn’t have a superior search engine; instead, it’s claiming that Google’s monopoly has enabled the company to develop a better product.

In order to build a good search engine, a company needs a massive number of searches. Because Google has paid distributors and product creators like Apple a premium (upward of $10 billion) to feature its search engine over others, it can collect more searches than any other company on the market and create a better product. Any search engine entering the market is at an automatic disadvantage.

The DOJ argues that Google has “limit[ed]” its investment in innovation in the United States due to its lack of competition. “In stark contrast,” the pretrial brief reads, Google “focuses on creating … innovation” in countries where it faces “more robust competition.”

In addition, Google controlling so much of the marketplace allows it to charge advertisers almost anything it wants, driving up the price of advertising in the United States.

At Stake: Google’s Breakup?

One rather unlikely outcome of the 10-week trial is Mehta ordering the breakup of the company. However, Paul Gallant, a tech-policy analyst at Cowen Washington Research Group, told the Wall Street Journal that it’s far more likely that, if the federal government wins, Mehta will simply impose “new constraints” on Google.

Either way, it might be years before the case is done and settled. In the meantime, American consumers will likely just keep “googling.”

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