Timeline on Monopoly Lawsuit Regarding Search and Search Advertising Market
The U.S. Department of Justice, along with a group of State Attorneys General, sued Google in 2020 for illegally monopolizing the internet search engine and internet search advertising markets.
The complaint, which refers to Google as “a monopoly gatekeeper for the internet,” argues that Google’s dominance in internet search and search advertising is a result of anticompetitive behavior that negatively affects competition, harms consumers, inhibits innovation, and prevents new market entrants.
Specifically, the Justice Department alleges that Google monopolizes internet search through pay-to-play agreements with search distributors that force users into using its search engine. The suit maintains that in these distribution agreements, Google pays other companies billions of dollars to feature its search engine on their devices and platforms – from manufacturers like Apple and Samsung, to wireless carriers like Verizon and AT&T, and browser developers like Mozilla Firefox. The suit alleges that these agreements forbid the preinstallation of any competing search engine, denying Google’s search challengers market access. The suit says that Google monetizes its search monopoly through advertising and uses the profits from its search monopoly to continue paying off search distributors. As a result, search competitors who can’t afford to cut billion-dollar checks to make their search engines accessible face an insurmountable barrier to entry.
In the suit, the Justice Department is asking for structural relief “as needed” to cure anticompetitive harm. When asked if the Department is seeking to break up Google, an official said that “nothing is off the table” but that the Department would leave the question of remedies to the court after it heard all the evidence.