Aiming to scrutinize Google's market success and the popularity of its search engine, the U.S. Department of Justice (DOJ) has begun its antitrust trial against Google in the U.S. District Court for the District of Columbia. The lawsuit is perceived by some as an attempt to reshape antitrust law to align with a more progressive stance.
NetChoice, a prominent trade association, has expressed concerns regarding the DOJ’s approach, emphasizing the consumer preference and the pro-competitive impact of Google Search. The association argues that the DOJ’s claims lack substantial evidence and factual backing, focusing more on the competitive impact rather than consumer welfare or preferences.
Carl Szabo, NetChoice Vice President & General Counsel, remarked, “Bidenomics’ effect can be described as raising prices and slowing the economy through overregulation. If the DOJ wins in this case against Google, the absurd tragedy of this ideology on American consumers will expand: we will pay more, get lower quality services and have less choice and power in the marketplace.”
In their antitrust suit against Google, the Justice Department and several state Attorneys General accuse the tech giant of monopolizing digital advertising technologies in violation of the Sherman Act. The suit alleges Google engaged in anticompetitive conduct, including acquiring competitors and forcing adoption of its tools, to eliminate competition and inflate advertising costs, seeking equitable and monetary relief for the alleged suppression of competition and consumer harm.
NetChoice points out that Google’s customers opt for its services due to their preference for the high-quality product the company provides. The association cites a lack of evidence of consumer harm by Google, noting that prices are not escalating, and the company’s products and services are continually advancing. A recent analysis by MarketWatch supports this perspective, showing a decrease in the prices of many tech products targeted by antitrust actions, despite the prevailing inflation in the U.S. economy.
The association also highlighted the intensifying competition in the search sector from other search engines, social media, and generative AI. It noted the increasing consumer preference for conducting searches on social media rather than traditional search engines and emphasized the potential disruptions in the search market share due to new competition from services like ChatGPT and Bing.
NetChoice raises concerns about the potential repercussions if the DOJ’s case proves successful, suggesting that it could lead to the unavailability or increased cost of low-cost online services like Google Search. The association argues that the case seems to be more about protecting competitors rather than consumers or competition, with companies like Microsoft advocating for the case to promote their search engine, Bing.
The association warns that a win for the DOJ could lead to the Biden administration further weaponizing its antitrust authority against American businesses, adopting broader antitrust language within agencies like the FTC to advance what they call “a progressive agenda.”
