The Two Sides of Google vs. US DOJ
The US Department of Justice led by Attorney General Bill Barr on Oct. 20, 2020 filed an antitrust lawsuit against Google accusing it of monopolistic practices. What is interesting about this lawsuit is that it defines a very specific market of “search advertising” (as opposed to “Internet advertising” or “digital advertising” ) in which Google holds over 80% market share.
These monopolistic practices seem to revolve around Google’s agreements with device manufacturers (like Apple) and telecom carriers like Verizon, Comcast and AT&T (who are long overdue for an antitrust investigation of their own). Google wasted no time in crafting a response of its own effectively arguing how paying for placement is a competitive practice similar to paying for shelf space. It also wrote this response in a user-friendly way with images, animations, and other media elements. It seems like a good response on the surface, except that it doesn’t address the core issue.
The Distribution Agreements are a Red Herring
Although Google’s response was well crafted, the Department of Justice’s complaint around search advertising is very long and thorough at over 60 pages. The distribution agreements with Apple and making Google the default search engine on Android are a relatively small but significant part of the complaint.
