The U.S. government presented key elements of its antitrust case against Alphabet’s Google (GOOGL.O) on Thursday, marking the conclusion of the evidentiary phase in a closely-watched court battle. The Justice Department contends that Google, a tech giant, violated antitrust laws by employing tactics to assert dominance in the realm of online search.
The trial, which commenced on September 12 and is anticipated to largely conclude on Thursday, has the Justice Department aiming to substantiate its claim that Google is a monopolist and has unlawfully exploited that monopoly power to prioritize its own financial interests.
No decision has been reached regarding whether to proceed to closing arguments, the final stage of the trial, which may potentially take place in the spring, as suggested during courtroom discussions about future hearings.
Throughout the trial, witnesses from prominent entities, including Verizon, Android manufacturer Samsung, and Google itself, have testified about the tech company’s substantial annual payments, totaling $26.3 billion in 2021. These payments are alleged to ensure that Google’s search engine remains the default option on smartphones and browsers, thereby maintaining a stratospheric market share.
As the evidentiary phase concluded, the final witness for the U.S., MIT economics professor Michael Whinston, argued that these contractual arrangements empowered Google with market influence in the search advertising sector. Whinston contended that “Google has exercised significant market power by raising prices.”
The outcome of this landmark trial will likely have far-reaching implications for the tech industry, potentially reshaping the landscape of online competition and challenging the dominance of major players like Google. The focus now shifts to the deliberations and legal maneuvers that will unfold in the coming months as the case progresses through its next phases.
