Alphabet CEO Sundar Pichai is set to testify in a landmark antitrust trial that could reshape the future of Google’s search dominance.
The U.S. government is alleging that Google has illegally paid billions of dollars to smartphone makers and carriers to make its search engine the default option on their devices. This, the government argues, has given Google an unfair advantage over its competitors and stifled innovation in the search market.
Pichai is expected to defend Google’s business practices and argue that the revenue-sharing agreements with smartphone makers and carriers are legal and necessary to keep its search engine competitive. He is also likely to point to Google’s investments in innovation, such as its development of new artificial intelligence-powered search features.
The outcome of the trial could have far-reaching implications for Google and the broader tech industry. If the government is successful, it could force Google to change its business practices and open the door to greater competition in the search market.
In addition to the allegations about Google’s business practices with smartphone makers and carriers, the government is also challenging the company’s dominance in the search advertising market. Google accounts for over 90% of all search ad revenue in the United States, and the government argues that this market power has allowed Google to charge excessive prices for its ads.
Google is expected to argue that its dominance in the search advertising market is due to the superior quality of its search engine. The company also argues that its ad platform is fair and competitive, and that it offers advertisers a wide range of options for targeting their ads to potential customers.
The sources for this piece include an article in Reuters.