The DOJ’s Investigation of US v. Google: The Oil Conglomerate’s Case for a Grand Unified Search Engine as the First Major Antitrust Case
This case is a huge deal. It’s hard to overstate it,” she said. “It is at least as big a deal as the Microsoft case, which is the last big antitrust case that we had. The time was 25 years ago.
That Microsoft case, which was filed in 1998, was about the company bundling its browser, Internet Explorer, with its Windows operating system. It nearly led to the company being split in two — but Microsoft and the DOJ settled.
Allensworth added that it’s also comparable to cases like the Justice Department’s 1906 Standard Oil case, which is widely considered the first major monopoly case. A federal court determined that the oil conglomerate owned by John D. Rockefeller controlled the American refining industry. The company was told to break itself up into around 40 different companies.
The DOJ is calling on the company to divest from Chrome, its web browser, and to end exclusive distribution agreements with phone makers like Apple and Samsung, through which Google paid them to establish its search engine as the default browser on their phones. The DOJ is also calling on Judge Mehta to prevent Google from establishing similar exclusive distribution agreements for its AI programs and apps, like its Gemini chatbot, Dahlquist said Monday.
The search market is competitive and this is shown by the results of the chatg pt. Sam Altman, OpenAI CEO, said on his social networking site that the company felt like they had what they needed to win. There are companies that are competing just fine without the remedies of the lawsuit.
Attorneys for the Justice Department and for Google are once again in battle at the United States Courthouse in D.C. This time it’s to determine what penalties Mehta will levy against the roughly $2 trillion company.
Major tech industry players are expected to be called on both sides to testify over the next several weeks. The court documents show that the lineup includes both search engines and senior VP’s; however, it is possible that this could change.
Dahlquist’s remarks were the opening salvo of the remedies phase of US v. Google, a landmark antitrust case that ended with judge Amit Mehta finding last year that Google’s search engine is a monopoly. The question in the courtroom this time, to be litigated over the next two weeks, is what to do to fix it. The process has to start by stopping the entire cycle.
As Gail was standing outside of the courthouse on Monday morning, she asked, “Do you know what is dangerous?” The threat Google presents to our freedom of speech” and the freedom of digital market innovation.
An hour before the proceedings began, several attorneys for the government read from statements. The media didn’t ask them questions.
Google Cancels Artificial Intelligence, Or Will Google Control the Search Market, or Will Competition Predominate? Judge Mehta on Google’s Case with the DOJ
The acting deputy director of the DOJ’s antitrust civil litigation division spoke in opening statements. In a roughly 45-minute presentation, he laid out a list of aggressive demands that the government wants to see Google implement.
This is an inflection point, he said. He asked the court: Will the U.S. allow Google, a monopolist, control the search market, or allow competition to prevail?
This case marked the beginning of the end of the long love affair between the tech world and Washington, D.C. For many years, the tech industry expanded with little regulatory control. Major tech companies are also facing federal lawsuits.
In the very same courthouse where the Google remedy trial is playing out, Meta is currently facing its own antitrust case filed by the Federal Trade Commision. The agency argues Meta has abused its power and acted as a monopoly by acquiring rivals in order to vanquish them as competitors.
The DOJ is also asking that Google stop making monthly third-party payments to phone makers to ensure its browser is the default option on those phones.
The word “exclusive” has been proposed to be deleted from agreements with Apple and other companies. “That is not enough, they can use their base agreements and offer phone makers large sums of money to take other companies out of the picture,” he said.
The company has argued for the past four years that it has never acted as a monopoly and that small changes are unnecessary. The leader said that their search product is superior to rivals’, which makes it dominate the industry.
John E. Schmidtlein, a lawyer for Google, argued in opening statements that the DOJ’s list of remedies in this case is just a “wishlist for competitors,” and that it will enable them to get resources that took Google decades to develop.
The company does not hold a monopoly on artificial intelligence and is not the subject of the antitrust case brought by the Department of Justice.
There’s still a lot of trial and a lot of negotiation left, of course, but as it stands the two sides are remarkably far apart. According to the company that plans to appeal the case, it will be fair as long as you can choose your own search engine. The current version of Google cannot possibly exist according to the government. Judge Mehta asked a lot of questions about the precedent for some of these requests, and seems to have a tolerance for sweeping change. If there’s an easy way to arrive at some middle ground that works for everybody, it hasn’t come up in court.
During the trial, the market for artificial intelligence came in occasionally, but now appears to be front and center for both sides. The DOJ’s proposed remedies are so severe, Dahlquist argued, because “Google is using the same strategy they did for search, and applying it to Gemini.” But he was also careful to say that he doesn’t think AI and search are the same thing, and that the rise of ChatGPT in particular should not convince the court that the search market is in fact plenty competitive.
David Dahlquist, the lawyer for the US Department of Justice, displayed a slide at the start of his opening arguments that describedGoogle’s “vicious cycle.” It goes like this: Google pays billions of dollars to be the default search engine practically everywhere, thus it gets more search queries, thus it gets better data, thus it is able to improve its results, thus it makes more money, thus it can afford more defaults. It is telling that that assessment is a virtuous cycle, but Google doesn’t really disagree. It is considered to be a cycle that creates the power of the search engine. The DOJ thinks that there is a perfect system, while the internet company believes there is a nightmare. A judge will make a decision.