US makes landmark legal move against Google

The global giant had revenue of $162bn in 2019, more than the nation of Hungary

More lawsuits could be in the offing since probes by US state attorneys general into Google’s broader businesses are underway. File photo

The US Justice Department and 11 states filed a competition lawsuit against Google for allegedly breaking the law in using its market power to fend off rivals.

Google, whose search engine is so ubiquitous that its name has become a verb, had revenue of $162bn in 2019, more than the nation of Hungary.

Republican Senator Josh Hawley, a vociferous Google critic, accused the company of keeping power through “illegal means” and called the lawsuit “the most important antitrust case in a generation”. The lawsuit promises to be the biggest competition case in a generation, comparable to the lawsuit against Microsoft filed in 1998 and the 1974 case against AT&T which led to the breakup of the Bell System.

Senator Elizabeth Warren tweeted on September 10, using the hashtag #BreakUpBigTech, that she wanted “swift, aggressive action”

The Microsoft lawsuit was credited with clearing the way for the explosive growth of the internet since the scrutiny prevented the company from attempting to thwart competitors.

The federal lawsuit marks a rare moment of agreement between the Trump administration and progressive Democrats. Senator Elizabeth Warren tweeted on September 10, using the hashtag #BreakUpBigTech, that she wanted “swift, aggressive action”. 

Shares of Google-owner Alphabet rose after news the government lawsuit was imminent. 

There was some doubt in the markets that Washington lawmakers will actually come together and take action, according to Robert Pavlik, chief investment strategist at SlateStone Wealth. The 11 states which joined the lawsuit all have Republican attorneys general.

More lawsuits could be in the offing since probes by state attorneys general into Google’s broader businesses are underway, as well as an investigation of its broader digital advertising businesses. 

— Reuters