A federal judge criticized Google for its negligent policy of deleting employee chat records in a landmark antitrust case. The Justice Department asked for sanctions against Google for failing to preserve evidence and concealing anticompetitive behavior, while Google denied wrongdoing. The judge called Google’s document retention policy shocking and negligent. Google was sanctioned in a previous case for similar evidence destruction claims.
During closing arguments, the focus shifted to Google’s conduct towards advertisers in the online search market. The DOJ argued that Google’s market dominance allowed it to raise prices on advertisers and manipulate search results to boost profits. Google’s defense team claimed it faced competition from other tech platforms, travel sites, smaller search engines, and media outlets. The judge appeared skeptical of Google’s argument that it faced meaningful competition given its 90% share of the online search market.
The judge also questioned the DOJ’s argument that Google failed to innovate in online search over the last decade. Microsoft’s admission during the trial that it hadn’t invested enough resources to challenge Google was cited. The judge warned the feds faced a hard road to prove their case. A decision on whether Google has maintained an illegal online search monopoly is expected later this year. Possible remedies include mandated “choice screens” for users to select their default search engine or even a breakup of Google’s business.
An unredacted document revealed Google paid $20 billion to Apple in 2022 to be the default search engine on iPhones and other devices. The deals with partners like Apple and AT&T, totaling $26.3 billion in 2021, have been criticized by the DOJ for stifling competition and limiting choice. Google denies operating a monopoly and claims the default deals are fair competition. Closing arguments followed witness testimony that began in mid-September and lasted for 10 weeks, involving key witnesses like Microsoft CEO Satya Nadella and Google CEO Sundar Pichai.
Google was previously sanctioned for evidence destruction in a separate case brought by Epic Games, leading to criticism from the judge about the suppression of relevant evidence. Google’s CEO testified that he had taken action to end the automatic chat deletion policy, which was in place when he took over in 2015. The judge has not indicated whether he will sanction Google over its document retention policy. The outcomes of the case could result in significant changes to Google’s core business depending on the judge’s ruling and any subsequent remedies that may be imposed.
