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Everyone knows Google. The word has become synonymous with internet search engines, no matter their actual names. “do a Google,” or “just Google it,” have become common phrases throughout the world. However, Google’s popularity has gone on to cause them big trouble —in early September the Department of Justice filed an antitrust lawsuit against the internet giant.
Law firm Holland & Knight details Google’s monopolistic nature, specifically its ad service, and how Google has used that monopoly size to their advantage to remove competitors in the market. Within this lawsuit, monopolies in the technology world will face massive consequences, with decisions including what will happen to other tech companies, or other big businesses, that are threatened with monopoly lawsuits. This could spell big changes for companies like Apple, Amazon and JetBlue, which have been threatened with monopoly lawsuits in the past.
In this case, the Department of Justice claimed that Google used their advertising service to eliminate competition, and, should this lawsuit rule in favor of the Department of Justice, Google may have to sell off portions of its advertising department. However, if the court rules in favor of Google, this will only make the company stronger and allow continued influence over advertisers.
The Department of Justice is claiming that Google employees were instructed to use self-deleting chats, which allowed the big business to get rid of evidence related to this case. The Department is also arguing that Google has an unfair share of their advertising market, which makes it difficult for other businesses to get ahead. Additionally, they will be discussing Google’s interactions with other companies and using that to showcase the big corporation’s model. Their overall claim is that Google has increased the cost of ad placement and restricted where advertisers can place their ads. Adversely, Google claims that the advertising model has shifted to markets such as Amazon and TikTok and that the opposition underestimates the number of advertising companies and competitors in today’s market. Google also claims that the government is missing where the competition is focusing, and that they are forgetting to factor in the swap to hand-held entertainment advertising through social media companies, online shopping platforms, and other cellular entertainment platforms.
As the case continues, Holland & Knight stated that a ruling is expected toward the end of the year. With both sides just recently making opening statements, it is unclear exactly how long the trial will go on for or who the courts are leaning toward at the moment. However, this case will undoubtedly change the future of advertising, as well as changing the landscapes for big businesses. The United States will simply have to wait and see if this change benefits big companies, or if the landscape will change in a new direction.
Susan Gilsbach is a second-year Business Management major.