Google Denies Its Search Dominates Due To Sweetheart Payments
Google has denied that its search engine is the world’s most popular because of sweetheart payments to other tech firms.
The tech giant has given evidence at a landmark US trial billed as the biggest anti-trust case in a generation. It’s over whether Google orchestrated a Search monopoly by paying billions of dollars to Apple, Samsung and Mozilla to make Google Search the default search engine on their products.
Google has already been dealt a massive fine over its operation of Search in the European Union. In June, the European Commission fined Google €2.42 billion (A$4.0 billion) for using search to dominate local shopping markets. “Google has abused its market dominance as a search engine by giving an illegal advantage to another Google product, its comparison shopping service,” The European Commission said.
“The Commission investigated Google’s market position in general internet search since 2008, and the Decision found Google to be dominant in each country since 2008, except in the Czech Republic where the Decision found Google to have been dominant since 2011.”
The US probe launched by the Department of Justice has concentrated on how Google Search became dominant in the first place, and has zeroed in on deals the company does with Apple, Samsung and Mozilla to maintain that dominance.
The trial is seen as a major showdown between big tech and US regulators and as having major repercussions for the internet when the judgment is delivered.
The US prosecutors say that Google shells out more than US$10 billion ( A$15.5 billion) annually so that Google Search will be the default search engine when users first fire up their browsers.
“This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition,” said the Justice Department’s leading prosecutor, Kenneth Dintzer. He said Google had attained 89 per cent of the internet search market.
Google has denied the thrust of the claim, that its search dominates due to the payments. It says Google Search dominates because it is the best and not because it locks out its competitors.
The trial is expected to go for ten weeks and rope in major industry players. Alphabet CEO Sundar Pichai, Apple senior vice president Eddie Cue, and Google co-founder Larry Page are among those expected to give evidence.