DoJ Sues Google: Showdown with Gatekeeper to the Internet on Claims that it is using its power unfairly to maintain a monopoly and foreclose all search engine competitors
- The DoJ is preparing to file a lawsuit on Tuesday accusing Google of unfairly excluding competitors
- Since Google is the preferred advertising platform among companies, advertising revenues are in the billions
- Google controls 90 percent of global searches
- This money is used to increase the presence on smartphones and to do deals with Apple and Android to make sure it is the search engine pre-installed
- The DoJ will claim in its lawsuit that this practice is unfair
- Google, Facebook and Twitter have all been scrutinized under Trump's administration
- Most recently, they were accused of using their powers to promote left-wing political agendas
- The news boosted the shares of Alphabet, the parent company of Google, as analysts predicted that liquidating the company would add value
The Justice Department is due to file an antitrust lawsuit against Google on Tuesday, alleging that it is using its unprecedented power unfairly to maintain its "monopoly" over the Internet.
Senior judicial officials quoted by the Wall Street Journal said the complaint alleged that Google was playing favorites with companies, excluding potential competitors and using billions in advertising revenue to gain its own presence on Apple and Android devices by making sure you become a smartphone search engine.
They will argue that Google makes it impossible for competing search engines to have a significant market share because a] advertisers go to them and no one else is turning their market into their products, and b] Google is giving Google an unfair advantage in dominating the market for search engines on smartphones .
Google called the lawsuit "deeply flawed" but made no further comment on Tuesday.
The lawsuit is the result of a 16-month investigation by the Justice Department.
On a call to reporters Tuesday, Assistant Attorney General Jeffrey Rosen said Google had some "early successes" that "no one disapproved of," but had grown into a "monopoly" and advertising giant.
Google met with the DoJ before the lawsuit was filed, but officials did not discuss whether or not they had negotiated settlement.
Sundar Pichai, Google's CEO, has insisted the company run fair in the past. The lawsuit has not yet been filed
Part of the lawsuit complains that Google is dominating the desktop, tablet and mobile device market
& # 39; For years there have been widespread bipartisan concerns about business practices in our online economy.
"Google is the gateway to the internet and a giant in search advertising … it has maintained its monopoly power through exclusive use," he said.
It comes amid growing questions and concerns in the government about the power of big tech.
The shares of Alphabet, Google's parent company, rose more than 1 percent after the announcement. Analysts were quick to predict that a split could get more value from the company.
Deputy AG Jeffrey A. Rosen told reporters Tuesday that Google "illegally maintained a monopoly".
Facebook has been subjected to a similar test in recent years because it has a monopoly on how people communicate via Facebook, Instagram or WhatsApp – all of them Mark Zuckerberg.
Facebook, Twitter, and Google – all notoriously run by left-wing businesspeople and mostly from California – have also been accused of using their power to prejudice the billions of people who use it.
Google has long been accused or favored left-wing media in Google News. Its CEO, Sundar Pichai, has repeatedly claimed that an algorithm determines what is shown and nothing else.
Last week, Facebook and Twitter were accused of meddling in the election by blocking an unflattering article about Joe Biden and his dealings with Ukraine.
Facebook claimed it wanted its fact-checkers to review the story without explanation, and Twitter said it was violating privacy laws.
The lawsuit is the result of years of investigation by Google.
Not only does it take its place in search engines, but Alphabet, its parent company, also owns YouTube, which has dominated online video platforms for years.
Assistant Attorney General Jeffrey A. Rosen is expected to provide more information on the lawsuit Tuesday morning.