Google hit by landmark competition lawsuit in US over search (2024)

Google hit by landmark competition lawsuit in US over search (1)Google hit by landmark competition lawsuit in US over search (2)Getty Images

The US government has filed charges against Google, accusing the company of violating competition law to preserve its monopoly over internet searches and online advertising.

The lawsuit marks the biggest challenge brought by US regulators against a major tech company in years.

It follows more than a year of investigation and comes as the biggest tech firms face intense scrutiny of their practices at home and abroad.

Google called the case "deeply flawed".

The company has maintained that its sector remains intensely competitive and that its practices put customers first.

"People use Google because they choose to - not because they're forced to or because they can't find alternatives," it said.

Monopoly concerns

The charges, filed in federal court, were brought by the US Department of Justice and 11 other states. The lawsuit focuses on the billions of dollars Google pays each year to ensure its search engine is installed as the default option on browsers and devices such as mobile phones.

Officials said those deals have helped secure Google's place as the "gatekeeper" to the internet, allowing it to own or control the distribution channels for about 80% of search queries in the US.

Google hit by landmark competition lawsuit in US over search (3)Google hit by landmark competition lawsuit in US over search (4)Getty Images

"Google has thus foreclosed competition for internet search," the lawsuit said. "General search engine competitors are denied vital distribution, scale, and product recognition - ensuring they have no real chance to challenge Google."

It added: "Google is so dominant that 'Google' is not only a noun to identify the company and the Google search engine but also a verb that means to search the internet."

The suit said the deals have hurt the public by damaging search quality in terms of privacy and data protection, reducing choice and thwarting innovation.

Sally Hubbard, who works for the Open Markets Institute, a Washington think tank that has long pushed for more aggressive action against big tech firms, said focusing on Google's search distribution deals was one of the easiest legal cases to make against the company.

On Twitter she said the lawsuit had "been so long coming but it's wonderful to see".

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Broader effort

The case could be the first of many in the US that challenge the dominance of big tech firms and potentially lead to their break-up.

Other states have launched their own investigations, and said they may join the suit filed on Tuesday or file their own.

Politicians in Congress have also called for action against Google and fellow tech firms Amazon, Facebook and Apple in an effort that has united Democrats and Republicans.

The decision to file the lawsuit just a few weeks before the US presidential election has raised questions about whether it was simply a move by the Trump administration to prove its willingness to challenge the influence of the sector if it gains a second term.

But officials said they had not rushed the investigation to ensure it was filed before the election - noting that for years, many advocates have said the government was moving too slowly on such issues.

"We're acting when the facts and the law warranted," deputy attorney general Jeffrey Rosen said, adding that the department's review of competition practices in the technology sector is continuing.

Google has faced similar claims in the European Union. It is already appealing against €8.2bn ($9.5bn; £7.3bn) in fines demanded by the European Commission which include:

Google parent Alphabet, which has a market value of more than $1tn, is expected to fight the allegations in the US as well. Its share price was little changed on Tuesday, despite the news.

Google hit by landmark competition lawsuit in US over search (5)Google hit by landmark competition lawsuit in US over search (6)

Taking on a giant like Google will be one of biggest competition cases in decades. But the case - to decide if the California-based company abuses its market power - could last years.

European regulators have led the way in taking action against the tech giants. But this move by the US Department of Justice is a sign that the mood has turned against them at home too.

The complaint says that two decades ago Google was a scrappy innovative start-up - but now it's the monopoly gatekeeper to the internet.

Google stands accused of using anti-competitive tactics to shut out rivals and extend that monopoly. Google says people use it because they choose to rather than being forced.

Deciding who is right won't be a quick decision.

Google hit by landmark competition lawsuit in US over search (7)Google hit by landmark competition lawsuit in US over search (8)

US tech giants accused of 'monopoly power'
After the questions: What next for Big Tech?
Google hit by landmark competition lawsuit in US over search (2024)

FAQs

What was the result of the Google lawsuit? ›

The settlement agreement for the class-action case did not include any monetary damages to be paid out by Google. Google does, however, have to pay out roughly $700 million as part of a separate class-action case involving the Google Play Store.

Is the Google antitrust trial over? ›

A landmark antitrust trial against Google concluded on Friday after a federal judge heard final arguments, setting the stage for a ruling that could fundamentally shift the tech industry's power. “The importance and significance of this case is not lost on me, not only for Google but for the public,” Judge Amit P.

Does the U.S. have a case against Google? ›

As the Justice Department's case against Google nears an end, the federal government has more suits in the pipeline trying to rein in Big Tech. The U.S. government's landmark antitrust trial against Google's search business is nearing its conclusion.

Does Google have a monopoly in the search engine business? ›

The DOJ sued Google in 2020 for allegedly maintaining a monopoly in the search engine market, pushing out competitors like Microsoft, by pursuing agreements with device makers and web browsers to be their default search engine.

How much will people get from Google lawsuit? ›

Google will pay $630 million into a fund that will be divided among an estimated 102 million eligible consumers across all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, according to the settlement terms for Utah et al v.

How do I check my Google settlement status? ›

You can view the list of your settlement reports in the “Settlements” section of the "Payments" tab in your Merchant Center account. Note: Settlement reports are only available for the past 18 months. icon. Select the date range you'd like to view a report for.

How long do you go to jail for antitrust law? ›

Violating antitrust laws can carry both criminal and civil penalties. Criminal penalties are capped at 10 years of jail time and $100,000,000 per violation.

Who was the judge in the landmark antitrust case grills Google justice during closing arguments? ›

U.S. District Judge Amit Mehta went back and forth with Google's lead litigator, John Schmidtlein, during the first day of the trial's closing arguments, questioning whether another company could amass the money and data needed to develop a search engine that could eventually compete against Google.

Why is antitrust illegal? ›

The Antitrust Division enforces federal antitrust and competition laws. These laws prohibit anticompetitive conduct and mergers that deprive American consumers, taxpayers, and workers of the benefits of competition.

What states were involved in the Google lawsuit? ›

The lawsuit was led by the Attorneys General from California, North Carolina, Utah, Tennessee, and New York and includes the attorneys general of all 50 states, the District of Columbia, and the territories of Puerto Rico and the Virgin Islands.

How do I join the Google lawsuit? ›

How do I claim money under the Google settlement? Go to the claim website and register at this link to obtain a class member ID. Getting a class member ID is necessary to file for a claim, according to the website. Once you register, the site will email you an individual class member ID number.

What are the allegations against Google? ›

The core claim being that Google's Universal Search algorithm promoted Google's own products in search engine results pages and demoted links to competing comparative shopping services and depriving end users of competition on the merits of the products and services so promoted.

What evidence is there that Google is a monopoly? ›

At trial, evidence showed that Google spends more than $20 billion a year on such contracts. Justice Department lawyers have said the huge sum is indicative of how important it is for Google to make itself the default search engine and block competitors from getting a foothold.

Is Google monopolizing the internet? ›

The tech giant is accused of monopolizing the internet search market, sidelining competitors and harming consumers. The DOJ claims Google struck illegal deals, but the company argues it has the best search engine.

How much of the search engine does Google own? ›

The following are the worldwide statistics on all platforms as of February 2024: Google – 91.62% Bing – 3.31% YANDEX – 1.84%

What was the outcome of the Google Earth lawsuit? ›

In 2014, ART+COM filed a lawsuit against Google, claiming it infringed the 1995 patent rights of Terravision. In May 2016 the jury of the United States District Court for the District of Delaware found in favor of Google. ART+COM also lost on appeal at the Court of Appeals for the Federal Circuit in 2017.

What was the verdict of Google vs Epic? ›

On December 11th, Epic won a surprise victory against Google in federal court. A jury unanimously decided that Google had turned its Google Play app store and Google Play Billing service into an illegal monopoly. But what did Epic win?

What was the verdict of the art com vs Google lawsuit? ›

The jury found that Appellee Google LLC (“Google”) did not infringe claims 1, 3, 14, and 28 (the “asserted claims”) of U.S. Patent No. RE44,550 (“the '550 patent”), and that each of the asserted claims is invalid as anticipated and/or obvious.

What was Google's response to Epic? ›

Following the antitrust ruling against Google late last year, the tech giant is now pushing back against Epic Games' extensive list of proposed remedies. In a new filing, Google dubbed Epic's demands as “unnecessary” and “far beyond the scope” of the verdict, reported by Tech Crunch.

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