Name: Google Prepares to Defend Search Dominance in Landmark Case
Uploaded: 2023-09-12T13:02:00Z
Duration: 7 min 3 s
Description: The legal team defending Google in a landmark antitrust case was instrumental in the '90s monopoly case against Microsoft. WSJ Google reporter Miles Kruppa joins host Zoe Thomas to explain why the lawyers say the situation this time is different and how their experience could affect the case. Photo: Alastair Grant/Associated Press

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The legal team defending Google in a landmark antitrust case was instrumental in the '90s monopoly case against Microsoft. WSJ Google reporter Miles Kruppa joins host Zoe Thomas to explain why the lawyers say the situation this time is different and how their experience could affect the case. Photo: Alastair Grant/Associated Press

https://m.wsj.net/video/20230912/d4b67501-12a6-4bba-b1cc-d18094dff9bd/1/hls/manifest-hd-wifi.m3u8

Google Prepares to Defend Search Dominance in Landmark Case

Zoe: Welcome to "Tech News Briefing". It's Tuesday, September 12th. I'm Zoey Thomas for the Wall Street Journal. Today, opening arguments are set to be heard in a historic case between the Justice Department and Google. The DOJ alleges the tech giant has an effective monopoly over how people navigate the internet through its widely used search engine. For Google's parent, Alphabet, a loss or any force changes to its business could be costly. Search is the backbone of its advertising business, which brought in most of its $283 billion in revenue last year. The trial is expected to run through mid-November and will be decided by a US District Court judge who could order a breakup or changes to the way Google promotes its search engine. Our reporter, Miles Kruppa is in Washington DC for the start of the trial, and he joins us now. So Miles, can you just remind us briefly what the arguments for both sides are?

Miles: In brief, the government is saying that Google has a monopoly in search, so it has about 90% of the market in search. And second thing is that it is using a legal means to basically maintain that monopoly, specifically by making these deals with companies like Apple, Samsung, to basically make it so that when you open up your web browser or your new phone, automatically direct you to Google. Google pays an estimated tens of billions of dollars a year to these companies for the right to do that. And the DOJ is basically saying this excludes competition. Smaller search engines can't pay these sums. Google's argument is basically, there is no case here because it is still very easy to switch to other services. These contracts, Google argues aren't exclusive and they are not exclusionary. They are merely a way for Google to promote its search engine like a cereal brand would promote its goods on an eye level shelf in the grocery store.

Zoe: So Kent Walker whose Google's chief legal officer was instrumental in the 1990s Microsoft antitrust case, so was Susan Creighton, who's the outside legal counsel. I wanna talk about how that experience is going to inform this case. But first, can you just remind us about the Microsoft case?

Miles: The Microsoft case in the nineties, it was the first really big tech giant after IBM getting sued by the government at the beginning of the internet era, being accused of basically trying to monopolize the early internet and specifically being accused of using its dominant personal computer software to basically tie in people to this new browser it was trying to promote, Internet Explorer and almost making it impossible to not use Internet Explorer if you had a Windows machine. A judge eventually found against Microsoft and then on appeals they eventually settled and agreed to change some business practices. But the reason all that's important is because we now find ourselves in this Google case leaning heavily on the precedent that Microsoft set. The DOJ is saying, what Google's doing now is almost no different from what Microsoft was doing in the nineties. And for Google, Kent and Susan they've been lawyers for Google for a long time, so it's not like they're new being brought in just because of their experience in the Microsoft case. But clearly they have this sort of firsthand knowledge of how an argument can be wielded against a tech company, an antitrust argument, and in effect they sort of know how the weapons were built that the DOJ is trying to use against them. And that's going to be sort of one of their tactics for how they try to unravel this case is we know what exclusivity looks like, we know what exclusionary looks like, and what Google is doing is not it.

Zoe: Explain that to us a little bit more. How do we expect Walker and Creighton to use their experience to frame Google's argument?

Miles: Yeah. I mean, I saw it when I was interviewing Kent in the Google Mountain View offices. I mean, he drew a direct through line from his work at Netscape to Google, and one way they'll do this is by hearkening back to what they say is a bedrock of American antitrust law, which is consumer welfare. This is now sort of hotly debated whether consumer welfare should be the number one concern of American antitrust law, but in Google's eyes that is still the dominant framework. So the way they argue this is at Netscape when we were challenging Microsoft and browsers, we were all for consumer choice. And now at Google they say they are still on the side of consumer choice. The way they've structured these agreements, you can switch and they say they're only making it easier for people to get Google's products, who want to use Google's products.

Zoe: And the DOJ, how is it expected to respond to that?

Miles: The DOJ is leaning heavily on this idea that even if these agreements aren't exclusive, they are quote unquote, "defacto exclusive." Basically, even if it is easy to switch, very, very few people end up switching for various reasons.

Zoe: So what kind of precedent could we expect this case to set?

Miles: I view it as really a test of how antitrust laws can evolve now that we're a few decades into the internet. So Microsoft was a very early internet case, but now many antitrust experts would argue we're in almost a new era of the internet where apps like Facebook or Google and YouTube can have dominant monopolies in their own markets. And so this is in a way a really big test of whether American law accepts some of these new arguments that are being made.

Zoe: All right, that's our reporter, Miles Kruppa who's gonna be watching the start of the case for us. Thanks for joining us, Miles.

Miles: Thanks Zoey.

Zoe: And that's it for "Tech News Briefing". Today's show was produced by Julie Chang with supervising producer Melanie Roy. I'm Zoey Thomas for the Wall Street Journal. We'll be back tomorrow. Thanks for listening.

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