The antitrust trial against Google – Alphabet begins in the USA. The Web could be revolutionized
The Justice Department's antitrust case against Google-Alphabet is finally underway, and its findings could reshape how consumers access the Internet and how online advertising is collected and distributed. In particular, the Washington District Court judge's verdict could have a major impact on how users search the Web on a daily basis. It won't be an easy process, and it will be an uphill battle for the DoJ .
To understand what's at stake in what could be the largest tech monopoly trial since the Justice Department prosecuted Microsoft more than two decades ago, it's important to focus specifically on what prosecutors are alleging. During opening remarks Tuesday, Justice Department lead attorney Kenneth Dintzer argued that the tech giant violated antimonopoly law through multiple, years-long exclusive deals with browser and phone makers.
Through contracts with companies like Apple, Google's search engine became the standard for programs like the Safari browser, while similar contracts with phone makers ensured that products came pre-installed with various Google apps. In doing so, the Justice Department argues that Google has left little or no market space for rival search engine makers, or has created an illegal monopoly.
Google's legal team's defense is apparently that this is just a testament to the company's popularity and success. Furthermore, everyone is still free to use alternatives if they wish, but this still happens too infrequently.
As The Verge reports, Dintzer at one point went so far as to claim that Google has illegally maintained its monopoly since around 2010, suggesting that the monopoly in question existed well before that date. Pressed by the judge, Dintzer also estimated that about 50% of all Google searches come from one of the company's paid default services.
The big question, of course, is what would happen if federal judge Amit Mehta sided with the Justice Department. If Mehta rules against Google, the government could set a new precedent for how it approaches the most powerful tech companies regarding antitrust and industrial monopoly violations. For Google specifically, however, this could lead to new restrictions on its business practices and potentially lead to breaking up parts of its widespread and sprawling empire.
So the action would hypothetically pave the way for innovative products from new companies that would otherwise face difficulties trying to gain any kind of foothold in a digital ecosystem ostensibly overseen and guided by Google. A loss for Google would also set a precedent for the Justice Department to pursue similar cases against companies like Meta and Amazon, which so far are still impervious to its actions but hold no less monopolistic positions.
If the court rejects the Justice Department's claims, however, Google leaders may feel emboldened to reassert their position at the top of the industry. But as NBC News notes, such a leak could be turned into evidence for Congress to pursue modernized antitrust laws aimed directly at the tech giants.
Meanwhile in Europe there are more and more actions against Google for its monopolistic management of advertising spaces, which has already led to the exclusion of its platform in some countries.
So, in a short time, we will know the evolution of the web which is already trying to digest the AI revolution.
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The article The antitrust trial against Google – Alphabet begins in the USA. The Web could be revolutionized comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/parte-il-processo-antritrust-contro-google-alphabet-negli-usa-il-web-potrebbe-risultarne-rivoluzionato/ on Sat, 16 Sep 2023 12:18:44 +0000.