Google has begun its defense in an antitrust case brought by the US government, accusing the tech giant of illegally solidifying its dominance in the online search industry by paying substantial amounts to secure its position as the default search engine on various browsers, devices, and platforms. While the government initially claimed that Google paid nearly $20 billion, Google’s recent testimony revealed a much higher amount spent for this purpose.
During the Justice Department’s cross-examination of Prabhakar Raghavan, who oversees the company’s search business, Google disclosed that it invested a staggering $26.3 billion in 2021 to establish itself as the default search engine. This figure was initially a point of contention, debated by both parties and Judge Amit Mehta over whether it should be kept confidential. Significantly, this amount constitutes around 16% of its search revenue, which totaled $165 billion in 2022, or approximately 29% of its $90 billion profit from search deals.
The revealed number emerged following a prior report by The New York Times, stating that Google disbursed $18 billion to Apple to secure its status as the default search engine on Safari and iPhones. Additionally, Google also makes payments to Mozilla for default placement in Firefox, Samsung for its devices, and other device manufacturers, wireless carriers, and platforms for similar positions.
Raghavan highlighted that Google faces competition from apps offering comparable features, such as travel booking platforms where users conduct searches directly within the app. Google contended that users have the liberty to switch to alternative search engines if they prefer, emphasizing that they often exercise this choice.
The ongoing trial, featuring testimonies from notable figures like John Giannandrea, Apple’s Senior VP of Machine Learning and AI Strategy, former Google search executive, and Microsoft CEO Satya Nadella, is scheduled to include testimony from Google CEO Sundar Pichai on October 30.
