Judge to Decide Google's Fate in US Antitrust Claims

Google and the U.S. Justice Department concluded closing arguments on Friday in a high-stakes antitrust case that could shape the future of the internet. The government accuses the tech giant of unlawfully monopolizing web search and related advertising markets.

During hours of grilling by U.S. District Judge Amit Mehta, both sides were probed on whether platforms like TikTok, Facebook, and Instagram are competitive substitutes for search advertising dollars – a central issue the court must resolve.

Mehta questioned if Google assesses competitors' pricing before adjusting its own, as the company's advertising business accounts for about three-quarters of its revenue.

"Advertising revenue is what drives Google's monopoly power today," argued U.S. lawyer David Dahlquist, claiming Google boasted it feels no real market pressures and does not fear increasing prices or not improving products.

Google's counsel John Schmidtlein countered that the company's share of U.S. digital ad revenue has steadily decreased, touting the advertising power of rivals like TikTok, Facebook, Instagram, and Amazon. He argued Google is "constrained" by rival platforms "where the eyeballs are."

Schmidtlein asserted that if Google were a monopolist, it would not bother improving products or keeping prices competitive, claiming "Google has won with a superior product."

The Justice Department has hammered away at Google, contending the search giant illegally abused its power to boost profits, highlighting its $26.3 billion in payments in 2021 to ensure its search engine's dominance on smartphones and browsers.

Mehta also took up the government's claim that Google intentionally destroyed internal documents relevant to the lawsuit, questioning the company's prior document retention policies and whether there should be consequences.

The landmark case, filed during former President Donald Trump's administration, was the first of several aimed at reining in big tech's market power. President Joe Biden's antitrust enforcers have followed with cases against Meta, Amazon, and Apple.

With closing arguments concluded, Judge Mehta will now prepare a major decision on whether Google's conduct violated antitrust laws, potentially ordering changes to the company's business practices.