Google is Being Sued For The Second Time in Two Years
Googles Second Antitrust Lawsuit Regarding Monopolizing Digital Search Services
Google Allegedly Violated the Sherman Act Through Anticompetitive Business Maneuvers and is Being Sued For The Second Time By Eight States
In 2020, Google had been slapped with a civil lawsuit brought on by the DOJ for violating Antitrust laws (Department of Justice v, Google). Fast forward to the first quarter of 2023, the unlucky corporation has just been brought up on new charges. These new filings came at the hand of the California Attorney General, as well as the AG from Colorado, Connecticut, New York, Virginia, New Jersey, Tennessee, and Rhode Island. Google allegedly violated the Sherman Act Through anti-competitive business maneuvers and is being sued for the second time by the Department of Justice as a result.
The very first lawsuit brought on by the DOJ differed slightly in nature as they went in depth to uproot Google’s decade-long illegal business practices. Tactics such as entering into a series of exclusionary agreements, like requiring Google to be set as the default search engine on billions of devices and computers around the world, and many times prohibiting the installation of a competitor. The main points from the DOJ's first case against the tech giant are that:
Google entered into exclusivity agreements prohibiting pre-installation of competing search engine.
Google entered into long-term agreements with Apple that require Google to be the default search engine on Safari browser, and other Apple search tools.
According to the National Archives, The Sherman Act was a measure passed by the senate in 1890 by a 51-1 vote and passed unanimously in the house of representatives by 242-0. The purpose of the bill is to counteract trusts. Its principal author was an Ohio State Senator John Sherman, who was the chairman of the senate finance committee and the Secretary of Treasury under President Hayes. The bill was modeled off similar bills that were already in place to regulate interstate commerce, but none as consequential or federalized as this one. Previous milestones and precedent were the cornerstones of the bill's success in the chamber, with cases revolving around the Constitution, Gibbons v. Ogden, and the Interstate Commerce Act.)
According to the New York City Bar, – “A trust is a document giving you, another person, or an institution the power to hold and manage your money for your benefit or the benefit of another person. A trust can serve many purposes, including estate planning, tax planning, medical planning, and charitable giving.”
It is alleged that Google monopolized important digital advertising technologies, collectively referred to as the “ad tech stack,” that website publishers depend on to sell ads and that advertisers rely on to buy ads and reach potential customers. Website publishers use ad tech tools to generate advertising revenue that supports the creation and maintenance of a vibrant open web, providing the public with unprecedented access to ideas, artistic expression, information, goods, and services. Google has violated sections 1 and 2 of the Sherman Act which stipulates that Broad and sweeping in scope, § 1 of the Act states that “[e]very contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” § 2 of the Act prohibits monopolization or attempts at monopolizing any aspect of interstate trade or commerce and makes the act a felony.
This case is currently unfolding and trials are set for September 2023. Can it be that Google made smart business decisions to secure its position globally, or did Google threaten a safe and fair business environment for all? Let us know your thoughts in the comments section.
References:
CNBC: https://www.cnbc.com/2023/01/24/doj-files-second-antitrust-lawsuit-against-google.html
Bloomberg:
National Archives:
https://www.archives.gov/milestone-documents/sherman-anti-trust-act
Department of Justice: