US Judge Amit Mehta is now poised to make a pivotal decision regarding Google’s future business practices in a closely watched antitrust trial that concluded on Friday. The US Department of Justice, along with attorneys general from 38 states, has accused the tech giant of wielding its dominant position in the search engine and advertising markets to stifle competition and maintain an unlawful monopoly.
During the trial, the government argued that Google has secured exclusive contracts with smartphone manufacturers and browser companies, making Google the default search engine across a wide array of devices and platforms. This strategy, according to the DOJ, effectively blocks competitors from gaining the market presence needed to challenge Google’s dominance.
The discussion also extended to Google’s practices in the search advertising market. Here, the government contends that Google’s ability to raise prices without losing market share—as evidenced by internal experiments showing price increases of 5 to 15 per cent—demonstrates the company’s monopolistic control. Judge Mehta noted this pricing power as indicative of behaviours typically associated with a monopoly.
Another point of contention in the trial was Google’s alleged delay in implementing features for Microsoft’s Bing in its SA360 marketing tool, despite previously stating it would not favour its own services. This delay, which lasted nearly five years, was highlighted by the DOJ as a deliberate act to hinder a competitor, potentially reflecting anticompetitive intent.
A significant concern raised during the proceedings was Google’s policy on retaining internal communications, particularly chat messages. The DOJ criticised Google for not preserving chat histories that could have contained relevant information for the trial, describing this practice as “breathtaking.” Judge Mehta expressed his surprise and disapproval at Google’s lax document retention policies, which could influence his decision on imposing sanctions or drawing adverse inferences against Google.
