Explained: US Govt’s Antitrust Lawsuit Against Google, Its Impact

The Department of Justice (DoJ) of the United States sued Google on Tuesday for its ‘monopoly’.

(Photo: The Quint)

The Department of Justice (DoJ) of the United States sued Google on Tuesday, 20 October, alleging that the company had abused its position, that harms competitors and the consumers.

The DoJ, which is also joined by eleven states of the US, filed a lawsuit against Google “for unlawfully maintaining a monopoly in general search services and search advertising.”

The timing of the lawsuit is questioned by many as this was also one of the poll promises made by the US President Donald Trump.

(Photo: Shruti Mathur/The Quint)

What Is the Lawsuit About?

In a statement, Deputy Attorney General of the DoJ Jeffrey A Rosen said that the main concerns are the business practices that have led to the ‘concentration of economic powers’ in few companies.

“Google achieved some success in its early years, and no one begrudges that, but, as the antitrust complaint filed today explains, it has maintained its monopoly power through exclusionary practices that harm competition.”

Jeffrey A Rosen, Deputy Attorney General, Department of Justice

Google’s Response

Google rejected these allegations made by the government as “deeply flawed”. The company in its defence said that all its customers are coming by choice and not by force.

“American antitrust law is designed to promote innovation and help consumers, not tilt the playing field in favour of particular competitors or make it harder for people to get the services they want.”

Kent Walker, Chief Legal Officer, Google

What Does This Lawsuit Mean?

Although the lawsuit is first of its kind, experts say that it could turn out to be a case like that of Microsoft where the trial went on for years.

While some other experts are predicting that there are chances of an out of the court settlement.

What Will It Lead To?

Governments around the world, including India, are trying to regulate these tech giants.

Interestingly, unlike companies like Amazon and Facebook, where Jeff Bezos and Mark Zuckerberg face the trail – being the founders of their companies – in the case of Google, Sundar Pichai will face the challenge.

There are speculation that this lawsuit may bring about some changes in the already existing antitrust law in the US, which may open doors for other countries in the world to make such regulatory laws.