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The Department of Justice antitrust trial against Google has reached a pivotal point that could reshape the future of the internet. The DOJ alleges that Google has used its internet search dominance to shut out competitors and hinder innovation. This case, which many have described as the most significant antitrust battle in over two decades, has accelerated with the Justice Department saying Google should be forced to sell its Chrome browser.
During the trial's opening statements, Justice Department attorney Kenneth Dintzer said that “the trial is about ensuring competition in the digital era, not just about penalizing past actions.” Google defended itself by stating that its search engine’s popularity is due to consumer preference, proven by the plentiful number of users of Microsoft’s devices, despite Bing being the preloaded browser.
Later in the trial, the court heard how Google allegedly secures contracts with companies like Apple to make Chrome the default browser, this is worth over $10 billion annually. Dintzer argued, this enhances Google’s market dominance and ruins competitor growth. The trial is set to involve major tech leaders, testimonies are expected from Alphabet CEO, Sundar Pichai, Microsoft CEO, Satya Nadella, and Apple executive, Eddy Cue.
Both the DOJ and the FTC have targeted Big Tech dominance, scrutinizing mergers and investments while accusing several of the nation’s largest companies of unlawfully controlling several markets. Earlier this year, the Justice Department sued Apple Inc. for preventing innovation by not allowing its competitors to access its hardware and software capabilities. The FTC has inquired with Alphabet, Microsoft, and Amazon about their investments in AI startups as part of an investigation into how these partnerships affect overall competition.
Alphabet’s “Search & Other” segment generated $49.4 billion, accounting for 56% of the company's total revenue for the quarter. Chrome is the most used web browser in the world with about 66% of browser usage and billions of users. Therefore, if a court were to mandate the sale of Chrome, it could significantly alter the landscape of the internet.
Alphabet shares fell about 6% in the days after the DOJ filed its motion, currently trading $166.57.
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