A U.S. judge, presiding over the Justice Department’s antitrust lawsuit against Alphabet Inc.‘s GOOG GOOGL Google, has upheld crucial claims made by the federal government.
What Happened: The U.S. Justice Department filed a lawsuit in 2020, alleging that Google used its market dominance to hinder competitors in the internet search market. Google had previously sought a summary judgment on all the government’s claims in the case.
In a decision disclosed in Washington on Friday, U.S. Judge Amit Mehta partially granted Google’s request, allowing some grounds while letting the remaining claims proceed to trial next month, reported Reuters.
This marks the most significant challenge to big tech’s power and influence since Microsoft Corporation‘s MSFT antitrust case in 1998.
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The government has argued that Google has been engaging in anti-competitive behavior, including illegal payments to smartphone makers like Apple and Samsung, carriers such as Verizon, and browsers like Mozilla to ensure its position as the default search engine.
While Google has denied any wrongdoing, Judge Mehta has allowed these allegations to proceed. “A company with monopoly power acts unlawfully only when its conduct stifles competition.”
Google did not immediately respond to Benzinga’s request for comments.
Why It’s Important: This development marks a significant step in the ongoing legal battle between the government and Google over anti-competitive practices in the tech industry.
Mehta highlighted that Google operates the largest U.S. Internet general search engine, so pervasive that it’s recognized as a verb in dictionaries. Naturally, as the trial progresses, all eyes will be on whether the government can prove that Google’s actions stifled competition and violated antitrust laws.
The judge has made it abundantly clear that the government must prove that each specific action, such as Google’s approach to search advertising, violates antitrust laws. Simply put, the government cannot build its case by linking a series of actions and arguing that they collectively breach antitrust regulations, the report noted.
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