The US government filed a blockbuster lawsuit Tuesday accusing Google of maintaining an "illegal monopoly" in online search and advertising in the country's biggest antitrust case in decades -- opening the door to a potential breakup of the Silicon Valley titan.

The politically charged case, which could take years to play out, draws new battle lines between the US government and Big Tech with potentially major implications for the sector.

Deputy Attorney General Jeffrey Rosen said the case filed with Republican state attorneys general from 11 states takes aim at Google's dominance of the online ecosystem.

"Google is the gateway to the internet," Rosen told reporters.

"But it has maintained its monopoly through exclusionary practices that are harmful to competition."

The suit said these agreements include long-term agreements requiring that Google search be pre-loaded on devices and making it impossible to delete some of its apps.

The government claims Google pays billions to maintain that position, thus reinforcing its monopoly position.

The lawsuit filed in Washington contends that Google's actions shut out competitors, and proposes that the court consider a range of remedies.

The filing calls for the court to "enjoin Google" from anticompetitive practices and consider "structural" changes to the company -- which could mean breaking it up.

Google called the lawsuit "deeply flawed."

"People use Google because they choose to -- not because they're forced to or because they can't find alternatives," Google general counsel Kent Walker said in a blog post.

"This lawsuit would do nothing to help consumers. To the contrary, it would artificially prop up lower-quality search alternatives, raise phone prices, and make it harder for people to get the search services they want to use."

The move comes after months of investigations by US federal and state antitrust enforcers seeking to check the company's power, and parallel probes into other titans such as Amazon, Facebook and Apple.

Progressives have accused the firms of stifling competition and worsening economic inequality. A recent House of Representatives report suggested Google and others should be broken up to preserve competition.

Conservatives have accused them of political bias, although evidence has been scant.

- More to come? -

Officials hinted that more antitrust actions may be coming.

"Today's review is a milestone but not a stopping point," Rosen said.

"We plan to continue our review of competitive practices by leading online platforms."

The main unit of holding firm Alphabet, Google operates the dominant search engine used in most of the world and a variety of related services such as maps, email, advertising and shopping.

It also operates the Android mobile operating system used on the majority of smartphones worldwide.

Google has been hit with big fines in the European Union for unfair competition, and has challenged those cases. The company has consistently denied claims of monopoly abuse.

Eric Goldman, director of Santa Clara University's High-Tech Law Institute, said the lawsuit was "well expressed" but appeared to be motivated by the political animus of the Trump administration to Silicon Valley.

Goldman said the case could end up being "Microsoft redux," with the industry evolving more quickly than the legal process.

"Any discussion on remedy is premature given how long this case will take to litigate," he said.

- Consumer harms? -

The case is the most high-profile since the action filed against Microsoft in 1998 and could be a test case for antitrust.

To win in court, the government will need to overcome a long standard of antitrust law that cases must show consumers are harmed by monopolistic practices.

Charlotte Slaiman of the consumer group Public Knowledge called the filing "an important first step towards people-centered innovation in search engines," and said that it could lead to "better products and services to compete fairly in the search market."

Google and its supporters will argue that consumers benefit from the free services it offers even if some competitors are disadvantaged.

Matt Schruers of the Computer & Communications Industry Association, a trade group which includes Google, said the lawsuit "was hurried out on the eve of an election where the administration has aggressively pressured tech companies to take actions in its favor."

Avery Gardiner, a former US antitrust enforcement lawyer who researches competition for the Center for Democracy & Technology, said the government faces an uphill battle in proving Google's harm to consumers.

The lawsuit "basically ignores price and focuses on quality and innovation," she said.

That is not new, she said -- "but the antitrust agencies in the past have been reluctant to move forward without evidence of price effects, so this is a shift."

Big Tech and antitrust: where things stand
Washington (AFP) Oct 20, 2020 - The US antitrust suit against Google is just one of several actions in the United States against the massive firms which have become increasingly dominant in parts of the economy.

Even as the massive case against Google works its way through the system, Amazon, Apple and Facebook could also find themselves in the crosshairs of regulators.

A Justice Department official said in announcing the Google lawsuit that the agency's review of internet platforms is ongoing.

"Today's review is a milestone but not a stopping point," Deputy Attorney General Jeffrey Rosen said.

The combined value of Amazon, Apple, Facebook and Google based on share price has more than tripled during the past five years to more than $5.4 trillion and the companies have weather the economic impact of the pandemic better than most.

A recent House of Representatives panel report accused the four Big Tech firms of acting as "monopolies," calling for sweeping changes to antitrust laws and enforcement.

Investigations into how fairly US tech giants are operating are being led by antitrust enforcers in the US and elsewhere.

Here is a summary of the main issues:

- Google -

The blockbuster lawsuit filed Tuesday by the US government accuses Google of maintaining an "illegal monopoly" in online search and advertising.

The suit contends Google's actions shut out competitors and proposes that the court consider a range of remedies including a possible breakup, but it offered few specifics.

Smaller players on the internet have complained that Google is biased toward recommending its own services such as maps, travel booking, and business reviews that can generate money from ads or transactions.

Google has countered that it seeks to deliver the best results to online queries, and that people are free to use other easily available search engines.

Google controls about 90 percent of search and, along with Facebook, dominates the lucrative digital advertising market.

US concerns about possible anti-competitive practices date back at least eight years, when a Federal Trade Commission investigation ended with Google promising to change its ways.

The largest unit of parent holding firm Alphabet, Google has been facing antitrust probes in Europe related to its shopping and advertising operations as well as how it manages Android, the dominant mobile operating system.

- Apple -

The complaints against Apple center on its App Store, for which it collects 30 percent of subscription fees for most third-party services.

Some developers say Apple takes too big a bite of the revenue and maintains rigid policies that may hamstring services competing with those of the iPhone maker. Fortnite-maker Epic Games has taken Apple to court over the practice.

Streaming music giant Spotify filed a complaint with EU authorities alleging Apple has been using its platform to unfairly promote its own Apple Music service.

Apple has argued its App Store delivers billions to independent developers, and that its practices are reasonable compared with other digital marketplaces.

- Amazon -

Amazon is the undisputed leader in online commerce, accounting for some 40 percent of US e-commerce sales, according to research firm eMarketer.

Aside from Amazon's size, its relationship with third-party sellers on its marketplace platform has drawn scrutiny from regulators.

At least one report suggests Amazon improperly used data from marketplace sellers to develop its own competing products -- a charge the company has denied.

Some critics of the company argue that companies like Amazon and Apple should not be allowed to own the "platform" while competing with others in that space, but any such restriction would need legislation.

- Facebook -

Facebook is the leading social network, reaching close to three billion people worldwide with its core platform along with Instagram and messaging services WhatsApp and Messenger.

An estimated seven-in-ten US adults use Facebook and its reach allows it to play an outsized role in digital advertising and in delivering news and information.

While many of the complaints about Facebook are about how it handles content such as political misinformation and hate speech, some activists say Facebook was allowed to squelch competition by buying up smaller rivals, and that this could form the basis of an antitrust action.

A Federal Trade Commission review of acquisitions dating back to 2010 could potentially "unwind" some of the deals.

Related Links
Satellite-based Internet technologies

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Amid e-commerce boom, anti-Amazon Shopify takes flight
Toronto, Canada (AFP) Oct 18, 2020
The pandemic has forced businesses worldwide to pivot online to survive, and many have turned to Shopify, a Canadian company that has emerged as a thriving alternative to Amazon. Founded 15 years ago in Ottawa, Shopify allows businesses to create an e-commerce site in just a few clicks. Already growing with more than one million e-stores at the end of 2019, its user base has exploded. "The retail world that would have existed in 2030 has really been pulled back into 2020," Shopify president Harl ... read more