Google (GOOGL, Financial) is embroiled in a significant antitrust trial in Virginia, having already been deemed to hold an illegal monopoly in ad technology. The trial could radically alter the internet landscape, challenging Google's dominance as the default online information gateway. Google plans to appeal this ruling.
US District Judge Amit Mehta is overseeing the three-week trial. Meta Platforms (META) also faces scrutiny for its acquisitions of Instagram and WhatsApp. The US Justice Department, alongside 38 state attorneys general, aims to dismantle Google's search engine agreements, which involve substantial payments to companies like Apple (AAPL) to remain the default search engine on their devices.
Proposed antitrust remedies include terminating these exclusive agreements and forcing Google to license search results to competitors. If these measures don't restore competition, Google may be compelled to divest its Android operating system. The inclusion of testimonies from Perplexity AI and OpenAI is anticipated, focusing on how Google's agreements impede AI company growth.
Google argues these proposals are extreme and threaten existing financial arrangements with browsers like Mozilla, potentially raising smartphone costs. The company plans to summon witnesses from Mozilla, Verizon (VZ), and Apple, all of whom have previously attempted and failed to intervene in the case.
