Apple deal could have been "suicide" for Google, company lawyer says

https://arstechnica.com/tech-policy/2024/05/doj-explains-how-google-apple-deal-should-have-been-done-to-avoid-legal-peril/

But Mehta did suggest at one point today that it seemed potentially "impossible" for anyone to compete with Google for default placements.

"How would anybody be able to spend billions and billions of dollars to possibly dislodge Google?" Mehta asked. "Is there any real competition for the default spot?"

According to Schmidtlein, that is precisely what "competition on the merits" looks like.

"Google is winning because it's better, and Apple is deciding Google is better for users," Schmidtlein argued. "The antitrust laws are not designed to ensure a competitive market. They're designed to ensure a competitive process."

Proving the potential anti-competitive effects of Google's default agreements, particularly the Apple deal, has long been regarded as the most critical point in order to win the government's case. So it's no surprise that the attorney representing state attorneys general, Bill Cavanaugh, praised Mehta for asking, "What should Google have done?" According to Cavanaugh, that was the "right question" to pose in this trial.

"What should they have done 10 years ago when there was a recognition" that "we're monopolists" and "we have substantial control in markets" is ask, "How should we proceed with our contracts?" Cavanaugh argued. "That's the question that they answered, but they answered it in the wrong way."

Seemingly if Google's default contracts posed fewer exclusionary concerns, the government seems to be arguing, there would be more competition and therefore more investment and innovation in search. But as long as Google controls the general search market, the government alleged that users won't be able to search the web the way that they want.

Google is hoping that Mehta will reject the government's theories and instead rule that Google has done nothing to stop rivals from improving the search landscape. Early in the day, Mehta told the DOJ that he was "struggling to see" how Google has either stopped innovating or degraded its search engine as a result of lack of competition.

Closing arguments continue on Friday. Mehta is not expected to rule until late summer or early fall.

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  "url": "https://arstechnica.com/tech-policy/2024/05/doj-explains-how-google-apple-deal-should-have-been-done-to-avoid-legal-peril/",
  "title": "Apple deal could have been “suicide” for Google, company lawyer says",
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  "content": "<div>\n<p>But Mehta did suggest at one point today that it seemed potentially \"impossible\" for anyone to compete with Google for default placements.</p>\n<p>\"How would anybody be able to spend billions and billions of dollars to possibly dislodge Google?\" Mehta asked. \"Is there any real competition for the default spot?\"</p>\n<p>According to Schmidtlein, that is precisely what \"competition on the merits\" looks like.</p>\n<p>\"Google is winning because it's better, and Apple is deciding Google is better for users,\" Schmidtlein argued. \"The antitrust laws are not designed to ensure a competitive market. They're designed to ensure a competitive process.\"</p>\n<p>Proving the potential anti-competitive effects of Google's default agreements, particularly the Apple deal, has long been regarded as the most critical point in order to win the government's case. So it's no surprise that the attorney representing state attorneys general, Bill Cavanaugh, praised Mehta for asking, \"What should Google have done?\" According to Cavanaugh, that was the \"right question\" to pose in this trial.</p>\n<p>\"What should they have done 10 years ago when there was a recognition\" that \"we're monopolists\" and \"we have substantial control in markets\" is ask, \"How should we proceed with our contracts?\" Cavanaugh argued. \"That's the question that they answered, but they answered it in the wrong way.\"</p>\n<p>Seemingly if Google's default contracts posed fewer exclusionary concerns, the government seems to be arguing, there would be more competition and therefore more investment and innovation in search. But as long as Google controls the general search market, the government alleged that users won't be able to search the web the way that they want.</p>\n<p>Google is hoping that Mehta will reject the government's theories and instead rule that Google has done nothing to stop rivals from improving the search landscape. Early in the day, Mehta told the DOJ that he was \"struggling to see\" how Google has either stopped innovating or degraded its search engine as a result of lack of competition.</p>\n<p>Closing arguments continue on Friday. Mehta is not expected to rule until late summer or early fall.</p>\n                  </div>",
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