Google CEO Sundar Pichai has insisted in the past that the company run…
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Google CEO Sundar Pichai has insisted in the past that the company runs fairly
The Department of Justice slapped Google with a blockbuster antitrust lawsuit, claiming it unlawfully maintains a monopoly to preserve its position as the 'gatekeeper to the internet' and stop any would-be competitors from even coming close to having a bite of the market.
The complaint alleges that Google dominates the market unfairly by making billions in ad revenue then using the money to cement its presence on smartphones and devices with 'exclusionary' deals with the likes of Apple, Samsung, LG to ensure it is the only search engine promoted anywhere.
It makes it not only unfair for consumers who are deprived of 'innovation and choice' but, according to the government, shuts out any possible competitor like Yahoo or Buy Bing Ads Accounts - Account4sale.com from promoting their product anywhere and in turn, 'starves' them of the opportunity to compete.
Eleven states have co-signed on the lawsuit - Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, South Carolina and Texas. Each state's Attorney General is Republican.
The lawsuit asks Google to enter 'structural relief' against any parties harmed and that it end the antitrust 'agreements'.
White House Adviser Larry Kudlow says Trump also consulted the DoJ on the lawsuit, which is the result of a 16-month investigation and a promise from AG Bill Barr to go after the predominantly Democrat world of big tech.
It comes less than two weeks before the election but Deputy Attorney General Jeffrey Rosen on Tuesday told reporters that the timing was not political.
Big tech CEOs are due to go before congress to answer questions on unrelated issues next week.
The lawsuit alleges that;
- Google dominates the search engine space, controlling 80 percent of all US searches and 94 percent of mobile searches last year alone
- It monetizes the dominance through text ads and shopping ads at the top of search engine results
- Google then uses the $40billion it makes in ad revenue every year to enter into lucrative 'agreements' with others to make Google the default search engine on devices
- It also specifies in some of these deals that no other search engine can be installed
- Among the deals is one with Apple that makes Google the default on iPhone Safari browsers and Siri
- The deal is so crucial to Apple, employees say losing it would be a 'code red'
Google pays companies like Apple, LG, Motorola, Samsung, AT&T, T-Mobile, Verizon, Mozilla, Opera and UCWeb 'billions' to make sure it is the default search engine on smartphones, TVs and other devices that the companies produce.
They also, according to prosecutors, enter deals that specify that no other search engine can be installed on the devices.
Among the contracts is one Google has with Apple that makes it the default on the iPhone Safari browser and Siri.
The money Apple makes from Google on the deal amounts for 15-20 percent of its worldwide net income, according to the complaint.
In 2019, that would have amounted to $11billion.
The deal is so vital to Google that the company views losing its default status on Apple devices as a 'Code Red' scenario.
In 2018, the complaint states, a senior Apple employee wrote to a Google counterpart: ‘Our vision is that we work as if we are one company.'
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