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U.S. Government Files Antitrust Lawsuit Against Google for Search Engine Dominance

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Original poster
Apr 12, 2001
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The United States Justice Department today filed an antitrust lawsuit against Google, claiming the Mountain View-based company has used anticompetitive and exclusionary practices in the search and advertising markets to maintain an unlawful monopoly.


"Today, millions of Americans rely on the Internet and online platforms for their daily lives. Competition in this industry is vitally important, which is why today's challenge against Google -- the gatekeeper of the Internet -- for violating antitrust laws is a monumental case both for the Department of Justice and for the American people," said Attorney General William Barr. "Since my confirmation, I have prioritized the Department's review of online market-leading platforms to ensure that our technology industries remain competitive. This lawsuit strikes at the heart of Google's grip over the internet for millions of American consumers, advertisers, small businesses and entrepreneurs beholden to an unlawful monopolist."
The lawsuit [PDF], which is also backed by Attorneys General in 11 states, calls Google the "monopoly gatekeeper" to the internet for billions of users and advertisers around the world. Google has accounted for almost 90 percent of all search queries in the United States, and has allegedly used "anticompetitive tactics" such as exclusionary agreements to maintain its monopolies in search and search advertising.

One of the main complaints against Google is its deal with Apple that allows Google to be the default search engine on Apple's Safari browser and other search tools, a privilege that Google pays billions for. Google's agreement with Apple "gives Google the coveted, default position on all significant search access points" for Apple devices.

Though there is an option to change the search engine, the DoJ says that "few people do" making Google the "de facto exclusive general search engine."

Google's agreement with Apple is apparently so valuable to Google that it considers losing the default status on iPhones and other Apple products as a "Code Red" scenario. In 2019, almost 50 percent of Google search traffic originated on Apple devices.
Under the current agreement between Apple and Google, which has a multi-year term, Apple must make Google's search engine the default for Safari, and use Google for Siri and Spotlight in response to general search queries. In exchange for this privileged access to Apple's massive consumer base, Google pays Apple billions of dollars in advertising revenue each year, with public estimates ranging around $8-12 billion. The revenues Google shares with Apple make up approximately 15-20 percent of Apple's worldwide net income. [...]

Thus, Google views the prospect of losing default status on Apple devices as a "Code Red" scenario. In short, Google pays Apple billions to be the default search provider, in part, because Google knows the agreement increases the company's valuable scale; this simultaneously denies that scale to rivals.
The lawsuit also accuses Google of entering into agreements that forbid preinstallation of competing search engines, requiring preinstallation of search apps in prime locations on mobile devices, and using "monopoly profits" to "buy preferential treatment" for the Google search engine on devices, web browsers, and other search access points.

Google's behavior allegedly makes it harder for "innovative new companies" to "develop, compete, and discipline Google's behavior," which has had an impact on competition and consumers. With the lawsuit, the DoJ is aiming to put an end to Google's anticompetitive conduct and "restore competition" for consumers, advertisers, and companies reliant on the internet economy.

In response to the lawsuit, Google said that the DoJ's position is "deeply flawed" and that people use Google "because they choose to, not because they're forced to, or because they can't find alternatives."

Google says that the lawsuit will do nothing to help consumers and would artificially prop up "lower quality search alternatives," along with raising phone prices and making it more difficult for people to "get the search services they want to use."

Specific to Apple, Google says that Apple uses Google Search as the default for its devices because "they say Google is 'the best.'" Google also points out that Bing and Yahoo pay Apple to be featured on Apple devices, and that it's "simple" to change iPhone settings and swap out the search engine choice through Safari preferences.

Google says that it is confident that a court will conclude that the lawsuit "doesn't square" with the facts or the law, and that while it plays out, Google will remain focused on delivering free services that "help Americans every day."

Article Link: U.S. Government Files Antitrust Lawsuit Against Google for Search Engine Dominance
 

superlawyer15

macrumors 6502
Sep 15, 2014
257
407
It’s about time. Google needs to be broken up into at least 5 different companies, two search engines, two YouTubes and Android.

The govt should also require diversity of thought within the management team of each new entity; that way we don’t see any misuse of corporate assets to illegally further political objectives.
 

Quu

macrumors 68040
Apr 2, 2007
3,009
4,958
I honestly always found it odd that Apple puts such a large emphasis on privacy (literally creating ads saying what happens on iPhone stays on iPhone) and yet every spotlight search or Siri query you perform that it can't interpret gets sent straight to Google.

If Apple were serious about our privacy this is one of the major parts they should alter. Create your own search engine or buy one and bring it in-house with the same privacy focus as other aspects of the operating system.

Also I knew Apple was getting paid but for it to be 8-12 billion which is 15-20% of Apple's net income worldwide .. that's insanely high and I can see why our privacy means nothing when you look at these numbers.
 

PinkyMacGodess

macrumors 603
Mar 7, 2007
5,116
1,906
Midwest America.
I honestly always found it odd that Apple puts such a large emphasis on privacy (literally creating ads saying what happens on iPhone stays on iPhone) and yet every spotlight search or Siri query you perform that it can't interpret gets sent straight to Google.

If Apple were serious about our privacy this is one of the major parts they should alter. Create your own search engine or buy one and bring it in-house with the same privacy focus as other aspects of the operating system.

Also I knew Apple was getting paid but for it to be 8-12 billion which is 15-20% of Apple's net income worldwide .. that's insanely high and I can see why our privacy means nothing when you look at these numbers.

Can't you change that? I thought people could change that. Hmm...

But when Apple Maps face planted, they did 'allow' Google Maps to work, so... 'Keep your enemies closer'?
 

ani4ani

macrumors 65816
May 4, 2012
1,411
1,265
UK
I honestly always found it odd that Apple puts such a large emphasis on privacy (literally creating ads saying what happens on iPhone stays on iPhone) and yet every spotlight search or Siri query you perform that it can't interpret gets sent straight to Google.

If Apple were serious about our privacy this is one of the major parts they should alter. Create your own search engine or buy one and bring it in-house with the same privacy focus as other aspects of the operating system.

Also I knew Apple was getting paid but for it to be 8-12 billion which is 15-20% of Apple's net income worldwide .. that's insanely high and I can see why our privacy means nothing when you look at these numbers.

I really believe if Google chose not to pay Apple, folks would still use Google on Apple devices.
 

gaximus

macrumors 65816
Oct 11, 2011
1,238
1,775
It’s about time. Google needs to be broken up into at least 5 different companies, two search engines, two YouTubes and Android.

The govt should also require diversity of thought within the management team of each new entity; that way we don’t see any misuse of corporate assets to illegally further political objectives.
That would suck for the customers. Would I have to search two different services to find the site or video I want. Would you tubers have to upload their content to two different services? Would YouTube1 get some channels and youtube2 get another channels?
 

WiseAJ

macrumors 6502a
Sep 8, 2009
702
1,709
PDX
It’s about time. Google needs to be broken up into at least 5 different companies, two search engines, two YouTubes and Android.

The govt should also require diversity of thought within the management team of each new entity; that way we don’t see any misuse of corporate assets to illegally further political objectives.

The company names will be "Goo" and "Gle" for the search engines and "You" and "Tube" for the two youtubes.

"Just Goo it" "No thanks I'd rather Gle it."
 

jayducharme

macrumors 68040
Jun 22, 2006
3,844
3,826
The thick of it
There are other search engines (like Duck Duck Go and Bing), so I'm not sure if the DOJ has a strong case. Google is certainly the most-used search engine, but it's not as dominant as IE was back in the 90s. Most people might leave Google as the default on iPhones, but they aren't forced to.
 

squirrellydw

macrumors regular
Nov 22, 2003
180
132
It’s about time. Google needs to be broken up into at least 5 different companies, two search engines, two YouTubes and Android.

The govt should also require diversity of thought within the management team of each new entity; that way we don’t see any misuse of corporate assets to illegally further political objectives.
And what do you think when they come after Apple? I agree Google should be broken up but I think Apple is a little different. I just think Apple needs to change their App Store polices.
 
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