When the government initiated an antitrust investigation into Google, Kent Walker, one of the company’s top lawyers, stated that the key was not a charm offensive, but rather for Google to clarify how its business operates. This occurred in 2009 when the Federal Trade Commission was examining whether Google had manipulated technology markets in its favor. Walker’s strategy proved successful, as the company agreed to make a few small changes to its business practices through a settlement in 2013, maintaining its dominant position in the search engine market for another decade.
However, Google and its parent company, Alphabet, are now facing their most significant legal challenge yet. They are preparing to go to federal court next week to defend against allegations from the Justice Department and a group of states that the tech giant illegally exploited its monopoly power to maintain its position as the top search engine. The Justice Department claims that Google made illegal agreements with phone manufacturers like Apple and Samsung, as well as internet browsers like Mozilla, to ensure it was the default search engine for their users, thereby preventing smaller competitors from gaining access to this aspect of the business.
This court battle, which is considered the most significant antitrust case since the Justice Department’s action against Microsoft 25 years ago, poses a significant threat to Alphabet’s $1.7 trillion empire. If Google loses and remedies are approved by a judge, it may be compelled to restructure in some way and could face damages and restrictions on search distribution deals. This could result in a decrease in users, reduced profits, and even limitations on Google’s ability to innovate with new technologies such as artificial intelligence.
To counter the regulators’ claims, Google will need to convince Judge Amit P. Mehta of the U.S. District Court for the District of Columbia that its decades-long dominance in the industry is a result of having a superior product, rather than engaging in abusive tactics. This is where Kent Walker, Google’s general counsel, once again plays a crucial role. Since joining Google in 2006, Walker has been responsible for the company’s legal strategy, including overseeing successful courtroom battles against Oracle and a case that could have held Google accountable for user-generated social media content. Walker has a team of in-house lawyers and hundreds of other employees working on the antitrust case, and Google has also enlisted the help of three law firms.
The company argues that it faces fierce competition from alternative services such as Amazon and TikTok, where consumers can find products and information online. Google also contends that its partnerships with companies like Apple and Samsung are lawful, and users can easily change their default search engine on these devices. Furthermore, Google points out that when users open the Safari browser on an iPhone, they can access a variety of other services besides Google, including Microsoft’s Bing search engine and Wikipedia.
Google will also challenge the Justice Department’s lawsuit by asserting that the government is attempting to use antitrust law in an unprecedented way to punish the company for its popularity. Walker states that American law should focus on promoting benefits for consumers, such as lower prices, increased innovation, and greater opportunities. If companies face obstacles in providing excellent goods and services for consumers, it will have negative consequences for everyone.
The court battle will revolve around whether the search market would be more competitive without Google’s default search agreements. Google will argue that Apple had no intention of developing its search engine, while the government will claim that Apple could have pursued a deal with Microsoft’s Bing or another startup search engine. The outcome of this case will have broad implications for the tech sector.
Kent Walker, recognized for his role in protecting Google from high-stakes litigation, has taken an unexpected turn in his career as he now defends an industry giant against monopoly claims raised by regulators. Walker grew up in Silicon Valley, graduating from Harvard and Stanford Law School. He spent five years at the Justice Department, where he worked on prosecuting Kevin Mitnick, a notorious hacker. Walker then joined Netscape, which led him to be involved in the landmark antitrust proceedings against Microsoft. His career trajectory has uniquely positioned him to lead Google’s defense against antitrust allegations.
While Walker is known for his principled approach, his team has been accused of employing aggressive tactics by opponents. David Boies, who successfully prosecuted Microsoft for the Justice Department over two decades ago, claims that Google failed to produce documents, denied liability, and fought tenaciously. Boies is currently suing Google in two civil cases, including one accusing the company of tracking users without their knowledge while using the web browser’s Incognito mode. He has obtained sanctions against Google twice, including a million-dollar penalty, for not providing relevant evidence.
In summary, Google is preparing to confront the Justice Department and a group of states in federal court, defending itself against allegations of illegal monopolistic practices. The outcome of this case could have far-reaching consequences for Google and its parent company, Alphabet. Kent Walker, Google’s general counsel, is leading the defense, aiming to convince the court that Google’s dominance is the result of a superior product, not abusive tactics.