In the LA Times article published on August 8, What to know about Google’s ‘watershed’ antitrust loss, AAI President Randy Stutz highlights the significance of the U.S. Department of Justice’s recent legal victory over Google. As the world watches major monopolization cases against the Big Tech firms unfold, it is significant that the government has notched a victory in the first decision to come down. It signals that these kinds of cases can be backed by compelling arguments capable of persuading federal judges.
From the article:
A case that ‘puts the world on notice’
The outcome marks a “watershed moment,” said Randy Stutz, president of the American Antitrust Institute, which advocates for strong enforcement of antitrust laws.
“You don’t often see cases against firms in the top 10 in market cap go to trial and get a verdict like this,” he said. “This really puts the world on notice that these cases need to be taken seriously and that these enforcers have some strong arguments — winning arguments — to back up their claims.”
Stutz noted that the ruling doesn’t fault Google for building a superior search engine that paved the way for its web browser dominance.
Rather, the case focused on Google’s “monopoly maintenance,” he explained, or “what it’s done since then to preserve its dominance and prevent competition from emerging.”
The last monopolization case of this magnitude was the antitrust lawsuit brought against Microsoft nearly 25 years ago, according to Stutz, which faulted that company’s tactics to maintain its dominance in personal computer software.
What could this mean for internet consumers?
In theory, it could mean fewer web browsers and mobile devices come with Google as the default web search option, opening the door to competition. Remember Bing? How about Yahoo?
Because right now, Google search’s market share is nearly a full pie, Samantha [Masunaga] noted in her reporting:
“In 2009, 80% of U.S. web searches went through Google. By 2020, that figure was nearly 90%, according to the ruling. Almost 95% of mobile searches used Google.”
Stutz said the ruling opens the door for other companies to compete with Google and bring innovation to “what’s become a very stagnant market.” That, ideally, gives consumers more options and better experiences.
“It’s incredibly important right now that we create room for competition and room for the best and the most innovative products to reach customers [and] advertisers and have a chance,” he said.
