CSO – Foreign look at this photo just two dudes having dinner at an upscale Vietnamese restaurant except of course the guy on the left is Tim Cook the CEO of Apple and the guy on the right is Sundar pichai the CEO of Google now that photo was taken about six years
Ago in 2017 and I remember seeing that and thinking don’t those two companies hate each other a competition is heating up between Apple and Google and these guys are all trying to get their foot in the door and a recurring issue for Steve Jobs was that Google was blatantly
Stealing features from the iPhone our lawsuit is saying Google you ripped off the iPhone yes there were headlines about a holy war and a threat to go thermonuclear but back to red wine and Vietnamese cuisine according to the New York Times around the time of this meal the two companies were intense
Negotiations to renew one of the most lucrative business deals in history a deal that would cement Google’s place as a search engine King the default search engine on the most popular phone in the US and that is why the US government is suing Google it says Google has repeatedly broken the law in
Maneuvering its way to becoming a monopoly gatekeeper of the internet foreign young men in the whole country smart and Rich Google’s parent company alphabet is a 1.7 trillion dollar company that’s one seven with eleven zeros after it and according to the US Department of Justice’s lawsuit they got
There by stacking the deck and muscling out the competition Google pays billions of dollars each year to Distributors to secure default status for its General search engine and in many cases to specifically prohibit Google’s counterparties from dealing with Google’s competitors for 15 years Google has pursued a course of anti-competitive conduct that has
Allowed it to Halt the rise of rival Technologies manipulate auction mechanics to insulate itself from competition enforce advertisers and Publishers to use its tools so let me show you what they mean and I’ll open Chrome just as an example here so from the top address bar I’ll type in I don’t know waterfalls
In Nepal and that takes me right away as you can see to Google results maybe that’s a little bit obvious right because it’s Chrome after all that I’m using if I go into mozilla’s Firefox same thing right at the top of the address bar we can already see that this
Is going to default to Google as a search engine and let’s set that aside I mean if we go to this is an iPhone here I’ve got the CBC page loaded up but if I go into the address bar here and I type waterfalls in Nepal because weird fascination with that once again
This takes us straight to Google by default so that deal with Apple you know you remember the dinner with Tim Cook and Sunder pichai How Could You Forget right and it’s Court filing the doj estimates that could be worth somewhere between 8 and 12 billion dollars annually as in Google for the privilege
Of being Apple’s default search engine gives Apple a hefty cut of the ad Revenue it generates whenever people use its search it’s easy money for apple and might be 15 to 20 percent of Apple’s worldwide net income think about that maybe 20 of Apple’s earnings are just
Google handing it money but this is arguably an even bigger deal for Google because Apple devices account for almost 60 percent of all mobile device usage in the United States and the lawsuit repeats again and again how being the default search engine on all those devices in one Fell Swoop gives Google a
Huge competitive advantage Google estimates that in 2019 almost 50 percent of its search traffic originated on Apple devices thus Google views the prospect of losing default status on Apple devices as a code red scenario now can you change your default search well sure you can and I’ll even show you
How to do it when you have Chrome open just as an example if you go into that top right context menu those three dots right at the bottom of the page you’ll have settings you click on that and then about halfway you see search engine Google you can click on that and then
You have your choice and go Yahoo Bing DuckDuckGo you name it but honestly who does that almost no one and it doesn’t stop there in fact it doesn’t even start there because Google’s Suite of products come pre-installed on almost every device sold in Canada and the United States if
A phone manufacturer wants even just one app like YouTube or Gmail because you know how can your fancy new phone not have those things the US government says Google forces those manufacturers to take the entire bundle of core apps so you get the search app you get Gmail you
Get Chrome you get maps and you can’t uninstall them even if you tried and I’ve tried right like if you go again into that settings context menu you click apps let’s scroll down let’s go to the Google Search app you see at the bottom here where normally you’d get
Like a little uninstall icon in Google’s case you just get this disable One cannot remove it from the phone’s storage the lawsuit details many other ways in which it alleges Google is being anti-competitive but the basic idea is always the same that Google isn’t The Runaway market leader
In search because it’s the best but rather because it has abused its weight creating unfair disincentives for any company to even want to compete and that has created a self-reinforcing monopoly which chokes out all rivals and which is illegal the actions they’re accused of are pretty simple it’s maintaining a Stranglehold
On search and search advertising Google of course says it has broken no laws and we’re likely to see three main ways it’ll make that point one that Google is only big because it’s the best no one does search better than Google and that’s why everyone uses it Google
Claims they compete on quality and improvements and that they did not illegally restrict competition two that it hasn’t excluded competitors at all you know Monopoly trials tend to be all about whether a giant in a space pushed out its rivals in an unfair way Google says for example you can change
Your default search engine they’re all there it’s a huge battle over the default what is the default the thing is you still have a choice as a consumer and anyway how is Google paying for default status any different from say Shreddies paying a grocery store to put its cereal at eye level
Is that unfair or does premium real estate just cost money but three and and maybe this is the most interesting argument of all Google says it isn’t as dominant as the lawsuit would have us believe because sure compared to other search engines it has 90 market share but Google doesn’t just
Compete with search engines it competes with Amazon when you’re looking for something to buy it competes with Reddit when you want to ask a question it competes with Spotify when you’re looking for a song and in those cases Google doesn’t have a monopoly at all because the world of competitors isn’t
Just Yahoo and Bing and DuckDuckGo it’s much much bigger than that foreign there’s nothing illegal about having a monopoly but cheating your way to the front of the pack is against the law being a monopoly unto itself is not illegal how you get to become a monopoly
Or maintain your Monopoly is where the problem lies and this is a huge trial 10 weeks the first Monopoly trial of the internet era has Google harmed its competitors by excluding them has it harmed advertisers by being so big it can charge whatever it wants and has it harmed Us by
Limiting choice and hoovering up all personal data so that it can get bigger and bigger a judge will determine how this all ends and you know for a moment just imagine being in his spot weighing the merits of both sides in a world where increasingly few players control our information entertainment business communication
Where they navigate our route to work in cars they control powered by artificial intelligence that does all the thinking to say there’s a lot at stake is a massive understatement
The biggest antitrust trial in 25 years is underway in the United States. Andrew Chang explains why the Department of Justice says Google broke the law to monopolize the internet.
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