The U.S. Department of Justice on Tuesday alleged that Alphabet Inc. Its Google pays more than $10 billion a year to maintain its position as the default search engine on web browsers and mobile devices, stifling competition.
"This case is about the future of the Internet and whether Google's search engine will face substantial competition," government lawyer Kenneth Dintzer said in his opening statement. "The evidence will show that Google requires tacit exclusivity to deter competitors."
Dintzer said Google was a monopoly until at least 2010 and now controls more than 89% of the online search market. "The company is paying tens of billions of dollars for the default option because it is uniquely powerful," he said. "Google has abused its monopoly in general search over the past 12 years."
The monopoly case is the first time the federal government has prosecuted an American technology company in more than 20 years. The U.S. Department of Justice and 52 attorneys general from states and U.S. territories accuse Google of illegally maintaining its monopoly by paying tens of billions of dollars to technology rivals, smartphone manufacturers and wireless service providers in exchange for being set as a preselected or default option on mobile phones and web browsers.
Google's lawyers have denied the government's claims and will file opening arguments later Tuesday.