ALL NEWS

The US government will sue Google for alleged anticompetitive abuses in search

Oct 20, 2020, 7:03 AM

google...

FILE - In this Sept. 24, 2019, file photo, a woman walks below a Google sign on the campus in Mountain View, Calif. New Mexico is suing Google over allegations that the tech company is illegally collecting personal data generated by children in violation of federal and state laws. The state attorney general's office filed a lawsuit Thursday, Feb. 20, 2020, in U.S. District Court claiming that Google is using its education suite that is marketed to school districts, teachers and parents as a way to spy on children and their families. (AP Photo/Jeff Chiu, File)

(AP Photo/Jeff Chiu, File)

    (CNN) — The Trump administration is expected to sue Google on Tuesday, according to two people familiar with the matter, in what is the largest antitrust case against a tech company in more than two decades.

In its complaint, the Justice Department is expected to make sweeping allegations that Google has stifled competition to maintain its powerful position in the marketplace for online search.

Google did not immediately respond to a request for comment.

The landmark federal complaint follows a year-long antitrust probe by DOJ investigators. And it comes on the heels of a major congressional report finding that Google and other tech giants enjoy “monopoly power” and have wielded their dominance in anticompetitive ways. That report alleges that Amazon has mistreated third-party sellers; that Apple’s app store fees and policies are anti-competitive; and that Facebook has sought to eliminate future rivals through targeted acquisitions.

The Justice Department’s expected suit against Google marks the most consequential step the US government has taken to hold Silicon Valley to account after Washington took a dramatic turn against the tech industry following evidence that major social media platforms were manipulated by foreign election meddling efforts in 2016. Since then, the top executives of major tech platforms have been repeatedly hauled before Congress to face questions about their responsibilities toward political speech; hateful content and misinformation; small businesses and local journalism; and competition.

The looming case could pose an unprecedented risk to Google’s wider advertising business, which brought in $134.8 billion in revenue last year, accounting for 84% of Google’s total business.

Even as the Justice Department prepares to take Google to court over antitrust concerns, others in the tech industry could face lawsuits of similar magnitude. Officials at the Federal Trade Commission have been investigating Facebook for over a year, and that investigation could culminate in its own landmark litigation.

The pending Google suit also symbolizes the growing criticism, particularly by former Democratic presidential candidates including Sens. Elizabeth Warren and Amy Klobuchar, against historic levels of economic inequality and corporate concentration in the United States.

“The most important tech industry monopolization case before this one was United States v. Microsoft in 1998,” William Kovacic, former chairman of the Federal Trade Commission, told CNN Business before the suit was announced. During that case, the US government alleged Microsoft broke the law by bundling its browser, Internet Explorer, with every copy of Windows — to the detriment of competition among browser makers. After several years of litigation, Microsoft and the government reached a settlement that imposed new limits on Microsoft’s software business.

Experts have since credited that case with paving the way for new innovation — including the rise of Google.

Kovacic said that, as before, the government faces years of litigation ahead — and a challenging path to victory. “None of this will be easy,” he said. “You can climb to the summit, but it’s a tough climb.”

Attorney General William Barr has reportedly taken a personal interest in the investigation and the resulting lawsuit, the New York Times has reported.

After the head of DOJ’s antitrust division, Makan Delrahim, recused himself over having previously represented Google in private practice, Barr assigned senior staffers in his own office to oversee the probe. He has reportedly pushed for an aggressive timeline for filing a suit; as far back as March of this year, Barr told the Wall Street Journal he hoped to bring the investigation “to fruition [in] early summer.”

Hanging over the case too will be President Donald Trump, who has been vocal in his criticism of tech platforms.

Trump has repeatedly blasted Facebook, Google and Twitter for allegedly systematically censoring conservative views, a claim the companies deny and for which experts have found no evidence. Last year, Trump told Fox Business that “we should be suing Google and Facebook and all that, which perhaps we will, okay?”

Trump’s remarks could complicate any lawsuit targeting the tech companies. By nature and longstanding custom, presidents are expected to steer clear of addressing government investigations and potential lawsuits, in order to avoid even the perception of politically motivated litigation.

Google’s critics have complained that its search business promotes Google’s own apps and services to users while demoting those of its rivals.

“Google search is not a neutral gateway to the information available on the web,” David Dinielli, a senior advisor at Omidyar Network and a former DOJ antitrust official, told CNN Business before the suit was announced. “Google search is a set of algorithms designed to make Google — or Alphabet, its parent company — the most money it can possibly make.”

Google has also faced antitrust scrutiny and numerous multibillion-dollar fines from European regulators, punishments the company has protested.

— CNN’s Evan Perez contributed reporting.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

All News

Rep. Phil Lyman, R-Blanding, speaks during the Utah Eagle Forum's annual conference at Salt Lake Co...

Emma Keddington

Rep. Phil Lyman defends post correlating DEI policies with Baltimore bridge collapse

Rep. Phil Lyman is defending a post made Tuesday, that said Diversity, Equity, and Inclusion (DEI) policies had something to do with the Baltimore bridge collapse. 

13 minutes ago

The Powder Baby Dry Shampoo team poses with its check after winning the 2024 Utah Entrepreneur Chal...

Logan Stefanich, KSL.COM

BYU student startup wins $30K at Utah Entrepreneur Challenge

BYU entrepreneur Kylee Black, who founded Powder Baby, said the cash prize will be instrumental in advancing her business.

1 hour ago

Utah Jazz Collin Sexton...

Ben Anderson

Jazz 3-18 Since Trade Deadline After Loss To Spurs

At 3-18 since the trade deadline, the Jazz now sit behind the 4-19 Portland Trail Blazers as the league’s worst team since February 8.

2 hours ago

Myrtle Spurge is often touted as deer-resistant and drought-tolerant, but the plant is rapidly inva...

Eliza Pace

Salt Lake County Health warns of harmful myrtle spurge plant

Myrtle Spurge was originally introduced to Utah as a decorative plant but is an invasive species that has spread to natural areas.

2 hours ago

IRS texts are bogus. Picture shows a sign saying "warning, scam alert" on a keyboard...

Britt Johnson

Millions to be paid for Utah’s largest real estate scheme settlement

Over $10 million in refunds will go to victims of a Utah-based real estate scheme following the settlement of a lawsuit.

3 hours ago

Outside of the Yale University Law School is pictured on September 27, 2018 in New Haven, Connectic...

Zenebou Sylla, CNN

Some New England universities, including Yale, break $90,000 barrier for total tuition cost in upcoming school year

(CNN) — Several New England universities and colleges, including Yale, have reached a pinnacle of at least $90,000 for undergraduate tuition and costs starting this fall. Yale University, Tufts University, Boston University (BU), and Wellesley College are among a few private institutions that will top this year’s costs for tuition, housing and other expenses, according to […]

11 hours ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

The US government will sue Google for alleged anticompetitive abuses in search