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Here's what's at stake for Google as it heads into battle with the DOJ

Sep 11, 2023 - businessinsider.com
Google is heading to court to defend its position against a lawsuit filed by the Department of Justice (DOJ) in October 2020, accusing the tech giant of using "anticompetitive and exclusionary practices" to maintain its online search dominance. The trial will focus on Google's deals with Apple and other device manufacturers to be their default search engines and whether this was illegal. The DOJ argues that Google quashed competition by paying these companies to be the default search provider on their devices and deterred users from accessing rival services.

The outcome of the trial will largely depend on whether Google's deals excluded healthy competition. Google argues that its deals are not exclusive and users can easily switch to a competitor. However, if it's proven that most users don't switch, this could strengthen the government's case. If Google loses, it could be forced to change its contracts with Apple and give Android users a choice of search engine when setting up their devices. A worst-case scenario could see Google banned from bidding for the default position on devices, potentially increasing the market share of rivals.

Key takeaways:

  • The Department of Justice (DOJ) has accused Google of using anticompetitive practices to maintain its online search dominance and is taking the tech giant to court.
  • The trial will focus on whether Google's deals with Apple and other device manufacturers to be their default search engines were illegal.
  • Key claims in the case include Google harming competitors through exclusionary agreements and acting anticompetitively with its search ad tool Search Ads 360.
  • If Google loses, it could be forced to change its contracts with Apple and potentially face a structural breakup, particularly in relation to its search advertising component.
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