Google CEO Sundar Pichai
Google is on a collision course with the government over its size and dominance.
Alphabet, Google's parent company, is a sprawling operation whose businesses include web searches, maps, the YouTube video platform and the Android mobile operating system. Google's products have become ubiquitous across the globe. Many of its services have more than a billion monthly users apiece.
Subscribe to the Google Report newsletter, receive notifications and see related stories on CNET.
Google is one of the most powerful companies in the world, and rivals have accused the tech giant of wielding its might to stifle innovation and competition. Now the US Department of Justice, state attorneys general and Congress are taking those allegations seriously. A DOJ antitrust lawsuit could be filed by the end of the month, according to The New York Times.
Antitrust scrutiny into Google isn't new. In 2013, the Federal Trade Commission wrapped up a two-year investigation into Google after allegations of biased search results. The agency, however, decided that Google wasn't violating any antitrust laws.
The renewed spotlight comes as tech giants more broadly face a reckoning over their scale and influence. Legislators and regulators are concerned over how that power might ultimately harm consumers, especially by choking off competition from smaller players in Silicon Valley.
Aside from Google, rivals Apple, Amazon and Facebook are also under investigation by federal regulators and lawmakers. In July, Google CEO Sundar Pichai appeared virtually at a hearing before the House Judiciary Antitrust Subcommittee, alongside Facebook CEO Mark Zuckerberg, Amazon CEO Jeff Bezos and Apple CEO Tim Cook.
Of the companies, Google is in the most imminent danger of antitrust action. Several areas of Google's business are being scrutinized, and there are nuances to the situation playing out at the DOJ.
Here's what you need to know about Google's antitrust battles:
Google's dominance in web search, digital advertising and smartphone software are the primary areas of interest to lawmakers and regulators.
The company processes around 90% of all online searches in the US. That stranglehold is the foundation of Google's massive advertising business, which generates almost all of the company's $160 billion in annual sales. Google has been accused of hurting competitors by prioritizing its own products, like shopping ads or local business listings, over the listings of rivals in its search results. Critics also complain that the tech giant takes content from publishers and other websites and uses that information in prepared answers directly on Google's search engine, rather than simply providing a list of links that send users away to other sites.
Google's ad business is also under a microscope because the company owns every step in a complicated system that connects ad sellers and buyers, which rivals say gives Google an unfair edge over the market. Much of the company's advertising prowess comes from acquisitions, including the 2008 buyout of the ad-tech firm DoubleClick.
The company also owns the Android operating system, the most popular mobile software in the world. Its dominance is hard to overstate; Android powers almost nine out of every 10 smartphones shipped globally. The tech giant has been accused of using that dominance to strong-arm partners to bundle Google's apps, like search and Maps, into their offerings.
The DOJ could file a lawsuit as soon as the end of the month, according to the Times report, but the exact timing isn't known. Attorney General Bill Barr and the 40 or so lawyers working on the case have disagreed over when it should be filed, the Times reported.
There's also an internal dispute at the DOJ over how broad the complaint should be. One team of lawyers is looking into Google's search business, while another is probing its advertising business, according to The Wall Street Journal.
It could be. Most of the DOJ lawyers on the probe argued they needed more time to build a strong case against Google, though Barr is said to have overruled their guidance, according to the Times. Some of the attorneys are concerned the aggressive timeline, with work completed before the election, is to ensure the Trump administration gets credit for taking on a big tech company. The lawyers viewed the September deadline as arbitrary and laid out their argument for a longer timeline in a memo that spanned hundreds of pages, the Times said.
Google declined to comment. The DOJ didn't return a request for comment.
Bipartisan support exists for antitrust scrutiny of Google. But some Republicans have cheered on the investigation alongside accusations that the tech giant censors conservative voices. President Donald Trump has repeatedly accused Google of foul play without evidence.
Two years ago, the president claimed that Google's search results were "rigged" to promote negative news stories on Trump. At the time, he told reporters, "I think Google has really taken advantage of a lot of people." He added, "Google and Twitter and Facebook, they're really treading on very, very troubled territory, and they have to be careful."
Last September, Texas Attorney General Ken Paxton announced an antitrust probe into Google's massive digital advertising business. The investigation has the participation of AGs from 48 states, the District of Columbia and Puerto Rico. As part of the probe, Paxton's office sent Google a civil investigative demand that asked for key information about its ad operation and data collection policies. The coalition of AGs is reportedly looking into Google's Android business, too.
The states are expected to file charges against Google, but it's unclear if they will join the DOJ's complaint or file one separately.
Google -- along with Apple, Amazon and Facebook -- is the target of a broader probe by the House Judiciary's antitrust subcommittee into Silicon Valley's market dominance. One of the goals of the investigation is to explore whether the US needs new competition laws to govern the tech giants in the digital age.
The subcommittee, led by Rhode Island Democrat David Cicilline, has gathered more than 1.3 million documents from the tech giants, competitors and antitrust enforcement agencies during the more than yearlong investigation. The culmination of the probe was July's historic hearing, in which the CEOs from all four companies appeared via video chat, an accommodation of the House's rules amid the coronavirus pandemic.
A report on the subcommittee's findings is expected in coming months.
Google's antitrust woes aren't limited to the US. Last year, the search giant was hit with a $1.7 billion fine from the European Commission for "abusive" online ad practices. The commission said Google exploited its dominance by restricting its rivals from placing their search ads on third-party websites.
Two years ago, the EU's executive arm fined Google a record $5 billion for unfair business practices around Android, its mobile operating system. The investigation focused on Google's deals with phone manufacturers, requiring them to preload specific Google apps and services onto Android phones.
Now playing: Watch this: Google's Pichai "We don't steal money from small businesses"
6:48
See the original post:
Google's antitrust battles: What you need to know - CNET
- S. Korea to launch $825mn fund to compete with Netflix, YouTube - Business Insider India - June 22nd, 2020 [June 22nd, 2020]
- Boomerangs and Frisbees: The effect of COVID-19 on HR trends - Thomsons Online Benefits - June 22nd, 2020 [June 22nd, 2020]
- Five key questions about Google and Apple's contact tracing system - The Telegraph - June 22nd, 2020 [June 22nd, 2020]
- The Consequences Of Shifting To A Hybrid Work Model - ABCN's Officing Today - June 22nd, 2020 [June 22nd, 2020]
- Big Tech Zeros In on the Virus-Testing Market - The New York Times - June 22nd, 2020 [June 22nd, 2020]
- From now on, we will divide history into before and after this pandemic - The Guardian - June 22nd, 2020 [June 22nd, 2020]
- Patagonia becomes latest company to pull ads from Facebook | TheHill - The Hill - June 22nd, 2020 [June 22nd, 2020]
- Andrew Yang wants people to get paid for data collected by tech giants - The Daily Dot - June 22nd, 2020 [June 22nd, 2020]
- DoF faces uphill battle in taxing tech giants The Manila Times - The Manila Times - June 22nd, 2020 [June 22nd, 2020]
- Juneteenth across the tech world - POLITICO - Politico - June 22nd, 2020 [June 22nd, 2020]
- TikTok joins the EUs Code of Practice on disinformation - TechCrunch - June 22nd, 2020 [June 22nd, 2020]
- For Health Tech Startups, Data Is Their Lifeline Now More Than Ever - Crunchbase News - June 22nd, 2020 [June 22nd, 2020]
- Apples iOS 14 will give users the option to decline app ad tracking - TechCrunch - June 22nd, 2020 [June 22nd, 2020]
- You want diversity, inclusion in tech? Embrace remote work - ZDNet - June 22nd, 2020 [June 22nd, 2020]
- Trump kept these tech giants apart now ones a buy and the other should be avoided - MarketWatch - June 22nd, 2020 [June 22nd, 2020]
- US pulls out of talks to tax tech giants in a blow to Europe's plans - CNBC - June 22nd, 2020 [June 22nd, 2020]
- European Union Seeks to Restrict Tech Giants From Grinding Smaller Competitors WIth Updated Tax and Content Ru - Tech Times - July 11th, 2020 [July 11th, 2020]
- Sequoia Capital Opens Its First Tech Incubation Center in Shanghai - Caixin Global - July 12th, 2020 [July 12th, 2020]
- Indian Govt Wants Tech Giants Google, Amazon And Facebook To Provide Source Code And Algorithms - IndianWeb2.com - July 12th, 2020 [July 12th, 2020]
- Invest NI's Bill Montgomery who helped bring top US tech giants to Northern Ireland steps down - Belfast Telegraph - July 12th, 2020 [July 12th, 2020]
- The Future of Remote Work, According to Startups - Visual Capitalist - July 12th, 2020 [July 12th, 2020]
- 10 big things: TikTok, on the clock - PitchBook News & Analysis - July 12th, 2020 [July 12th, 2020]
- Tiktok and finding the real digital imperialists - The New Indian Express - July 12th, 2020 [July 12th, 2020]
- US slaps French goods with 25% added duties, but delays effective date - Financial World - July 12th, 2020 [July 12th, 2020]
- U.S. targets $1.3-billion in French imports in retaliation for tax on tech giants - The Globe and Mail - July 12th, 2020 [July 12th, 2020]
- Kudos to TikTok, tech brethren; Starbucks & Luckin have us soured on coffee cos. - Compliance Week - July 12th, 2020 [July 12th, 2020]
- Silicon Valley giants have thousands of US military contracts - E&T Magazine - July 12th, 2020 [July 12th, 2020]
- Tech giants: From the basement to world domination - KnowTechie - July 12th, 2020 [July 12th, 2020]
- This Week's Awesome Tech Stories From Around the Web (Through July 11) - Singularity Hub - July 12th, 2020 [July 12th, 2020]
- US tech giants halt Hong Kong police help TechCrunch - July 12th, 2020 [July 12th, 2020]
- Infographic: How the Tech Giants Make Their Billions - July 12th, 2020 [July 12th, 2020]
- facebook: US tech giants face hard choices under Hong Kong ... - July 12th, 2020 [July 12th, 2020]
- FYI: You do all know that America's tech giants, even ... - July 12th, 2020 [July 12th, 2020]
- TikTok ban: Facebook, tech companies benefit from US ... - July 12th, 2020 [July 12th, 2020]
- U.S. Tech Giants Pause Responses To Hong Kong Requests ... - July 12th, 2020 [July 12th, 2020]
- IBM Q2 earnings preview: can the tech giants cloud revenue keep growing? - IG Bank - July 16th, 2020 [July 16th, 2020]
- Buying tech stocks is the most crowded trade in history. - The New York Times - July 16th, 2020 [July 16th, 2020]
- Dow Jones Slumps as Johnson & Johnson Boosts Outlook, Apple and Cisco Stocks Head Lower - Motley Fool - July 16th, 2020 [July 16th, 2020]
- IBM, Verizon team up for 5G effort aiming to accelerate business solutions - WRAL Tech Wire - July 16th, 2020 [July 16th, 2020]
- BREAKING: American Tech Giants Google-Apple Remove Palestine From World Maps, Replace With Israel - India.com - July 16th, 2020 [July 16th, 2020]
- VMware Invests With Other Tech Giants In Digital Assets Series C Round - Forbes - July 16th, 2020 [July 16th, 2020]
- U.S. tariff threat isn't swaying France on taxing tech giants - Accounting Today - July 16th, 2020 [July 16th, 2020]
- Trio of Tech Giants the Latest on Receiving End of BIPA Lawsuits - findBIOMETRICS - July 18th, 2020 [July 18th, 2020]
- G Suite's new unified interface poses an existential threat to Zoom and Slack - Business Insider - July 19th, 2020 [July 19th, 2020]
- India's Jio creates 5G tech in-house, teams with Google on affordable smartphone - FierceWireless - July 19th, 2020 [July 19th, 2020]
- The Twitter Hacks Have to Stop - The Atlantic - July 19th, 2020 [July 19th, 2020]
- Tech giants this country needs YOU! Do your moral duty and stop avoiding tax to help save our economy - The Sun - July 19th, 2020 [July 19th, 2020]
- Apple expands coding partnership with Black schools as tech firms grapple with lack of diversity - USA TODAY - July 19th, 2020 [July 19th, 2020]
- How Huawei landed at the center of global tech tussle - Chicago Daily Herald - July 19th, 2020 [July 19th, 2020]
- Kamala Harris blamed for EVERYTHING as Internet mocks news report 'exposing' her ties to tech giants - MEAWW - July 19th, 2020 [July 19th, 2020]
- Wall Street delivered the 'kind of pullback I've been waiting for,' Jim Cramer says - CNBC - July 19th, 2020 [July 19th, 2020]
- American tech giants Google-Apple remove Palestine from world maps, replace with Israel - Daily Times - July 19th, 2020 [July 19th, 2020]
- Chinese tech giants have tens of billions at stake in India - TechNode - July 19th, 2020 [July 19th, 2020]
- The Streaming Wars Could Become a Battle of Tech Giants. Heres Why. - Barron's - July 19th, 2020 [July 19th, 2020]
- Advertising giants agree to evaluate mutual definition of hate speech - Axios - July 21st, 2020 [July 21st, 2020]
- MPs say tech giants have 'failed to tackle' Covid-19 infodemic and Government must regulate them now - Press Gazette - July 21st, 2020 [July 21st, 2020]
- US Tech Giants trying to survive the Chinese Market - Market Capitalize - July 21st, 2020 [July 21st, 2020]
- China's aggression is undermining its tech giants' global ambitions - Nikkei Asian Review - July 21st, 2020 [July 21st, 2020]
- With Just $130K In Funding, Indias Nimo Planet Is Looking To Challenge Tech Giants With Its Smart Glasses - Inc42 Media - July 21st, 2020 [July 21st, 2020]
- Coronavirus scams (back) in the spotlight - POLITICO - Politico - July 21st, 2020 [July 21st, 2020]
- The background to EU citizens' court win over US tech giants - The Guardian - July 21st, 2020 [July 21st, 2020]
- Heres why BlackRocks bond chief says hes bullish on highflying tech stocks - MarketWatch - July 23rd, 2020 [July 23rd, 2020]
- How buyouts by big tech stifle innovation - Livemint - July 23rd, 2020 [July 23rd, 2020]
- Apple digs in over its App Store fees - BBC News - July 23rd, 2020 [July 23rd, 2020]
- How Spotify and TikTok Beat Their Copycats - Harvard Business Review - July 23rd, 2020 [July 23rd, 2020]
- What does the pandemic mean for the smart city revolution? - TechHQ - July 23rd, 2020 [July 23rd, 2020]
- Cramer says moves in tech stocks are 'truly insane' as Amazon and Tesla climb - CNBC - July 23rd, 2020 [July 23rd, 2020]
- Google has a plan to lure shoppers away from Amazon - CNET - July 23rd, 2020 [July 23rd, 2020]
- Could the pandemic affect our perspective on smart cities? - Tech Wire Asia - July 23rd, 2020 [July 23rd, 2020]
- 11 China-based Suppliers of US Tech Giants Sanctioned Over Alleged Human Rights Abuses vs the Uighur - Tech Times - July 23rd, 2020 [July 23rd, 2020]
- Apple, Google and Sony will be critical to MLB season shortened by coronavirus - CNBC - July 23rd, 2020 [July 23rd, 2020]
- Meet Gaia X Europe's answer to the power of U.S. and Chinese cloud giants - CNBC - July 23rd, 2020 [July 23rd, 2020]
- 5G takes the Senate stage - Politico - July 23rd, 2020 [July 23rd, 2020]
- Typewise taps $1M to build an offline next word prediction engine - TechCrunch - July 23rd, 2020 [July 23rd, 2020]
- Stocks fall to session low, with Dow the dropping 250 points as tech falters - CNBC - July 23rd, 2020 [July 23rd, 2020]
- These 5 tech giants could buy VMware if Dell chooses to sell the software giant, according to analysts: 'VMware would be a valuable property to any... - July 23rd, 2020 [July 23rd, 2020]
- US Congress to question heads of tech giants on Wednesday - Yahoo News - July 25th, 2020 [July 25th, 2020]
- China's newest technology stock exchange is thriving despite the pandemic - The Economist - July 26th, 2020 [July 26th, 2020]
- Tech CEO hearing will probably be postponed, sources say - CNBC - July 26th, 2020 [July 26th, 2020]
- Zuckerberg, Bezos, other tech CEOs to testify on competition - WBIR.com - July 26th, 2020 [July 26th, 2020]