US accuses Google of paying $10 billion a year to eliminate search rivals

The Justice Department and 38 states and territories outlined Tuesday how Google systematically used its power in online search to intimidate competitors, as the internet giant fought back fiercely, when the market opened. the most important trial on technological power in the modern Internet age.

In a packed courtroom at the E. Barrett Prettyman U.S. Courthouse in Washington, the Justice Department and states have painted a picture of how Google used its deep pockets and dominant position, paying $10 billion a year to Apple and others to become the leading search engine by default on smartphones. Google sees these agreements as a “powerful strategic weapon” to eliminate competitors and consolidate its search engine, the government said.

“This feedback loop, this wheel , has been a turning point for more than 12 years,” said Kenneth Dintzer, the lead attorney for the Justice Department court. "And it always works to Google's advantage."

Google has denied illegally using agreements to exclude its search competitors and said it simply provided a top quality product, adding that people can easily change the search engine they use. The company also said that Internet search extends broader than its general search engine and highlighted the many ways people now find information online, such as Amazon for shopping, TikTok for entertainment and Expedia for travel.

"Users today have more search options and more ways to access information online than ever before," said John E. Schmidtlein, the lawyer who opened the doors to Google.

The back-and This is the federal government's first monopoly lawsuit since it attempted to dismantle Microsoft more than two decades ago. This case – U.S. et al. v. Google – is poised to have profound implications not only for the Internet giant, but also for a generation of other big tech companies which have come to influence the way people shop, communicate, entertain and work.

Over the next 10 weeks, the government and Google will present arguments and will interview dozens of witnesses, examining how the company came to power and whether it broke the law to maintain and amplify its dominance. The final ruling, issued by Judge Amit P. Mehta of the U.S. District Court for the District of Columbia, could shift the balance of power in the technology industry, which is embroiled in a race for artificial intelligence that could transform and disrupt people's lives. /p>

A government victory could impose limits on Google and change its business practices, sending a message of humility to other tech giants. If Google wins, it could serve as a referendum on increasingly aggressive government regulators, raise questions about the effectiveness of century-old antitrust laws and further embolden Silicon Valley.

“It is a test of whether our current antitrust laws – the Sherman Act, written in 1890 – can adapt to markets likely to be monopolized in the 21st century,” said Bill Baer, ​​​​former senior antitrust official at the Justice Department, adding that Google was "unquestionably powerful."

This case is part of a broader effort by the Biden administration and states to rein in the biggest tech companies. The Justice Department has filed a second lawsuit against Google over its ad technology, which could go to trial as early as next year. The Federal Trade Commission is separately heading toward trial in an antitrust lawsuit against Meta. Investigations remain open and could lead to antitrust lawsuits against Amazon and Apple.