Report: Google’s Exclusive Search Deals at Heart of U.S. Lawsuit

The Justice Department filed an antitrust lawsuit Tuesday against Alphabet Inc.’s Google, alleging the technology company engaged in anticompetitive practices to achieve and sustain its market dominance, The Wall Street Journal reported. While the suit focuses primarily on Google’s core internet search business, the Justice Department is separately continuing to investigate Google’s awesome power in digital advertising. States are pursuing a separate probe of Google; some are joining the Justice Department case. Here’s a look at why Google’s businesses are under so much scrutiny:


The Justice Department alleges that Google is illegally maintaining its monopoly in search through exclusionary contracts with distributors like mobile-phone makers, wireless carriers and web browsers to make Google their default search engine. As a result of these agreements, which involve Google paying out billions of dollars to distributors each year, Google owns or controls search distribution channels accounting for about 80% of the general search queries in the U.S., according to the government’s complaint. These agreements thus prevent competitors from being able to get any kind of meaningful foothold, the government argues.

Google’s chief legal officer said in a statement that the suit was flawed and that consumers use Google because they chose to, not because they are forced or lack alternatives.