DoJ Challenges Google's Search Ad 360 Over Alleged Discrimination
The U.S. Department of Justice (DoJ) is set to challenge Google's Search Ad 360, alleging it discriminates against other search engines. The trial begins on September 12, focusing on Google's search agreements and the impact of Search Ad 360 on competition.
This case differs from the Microsoft case, as it centres on Google's negotiations with other companies to feature on their platforms, rather than excluding competitors from its own. The DoJ argues that Google has 'exclusive' agreements with mobile manufacturers, wireless carriers, and browser developers, preventing rivals from showcasing their products. However, Google maintains that its market share responds to consumers' preferences, as evident in global search trends favouring 'google' even on competing platforms like Bing.
The DoJ's case relies on proving Google's monopoly power in the search market and demonstrating that the company has maintained or acquired this dominance through unlawful conduct. Yet, the DoJ's theory of harm remains unclear, and some experts question the legal strength of the case. Google counters that its search agreements, similar to slotting fees in supermarkets, do not hinder consumers from switching default search engines.
The DoJ's trial against Google commences on September 12, aiming to determine if Google's Search Ad 360 and search agreements harm competition. The outcome may depend on the court's interpretation of the law and the evidence presented. Regardless, the case highlights ongoing concerns about market dominance and consumer choice in the tech industry.
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