Google CEO Sundar Pichai Faces Tough Questions on Rival Lockout in Antitrust Trial
In a major antitrust trial against Google, CEO Sundar Pichai found himself in the hot seat as he defended the company against allegations of locking out rivals. The trial, led by the Department of Justice and a coalition of state attorneys general, aims to prove that Google has engaged in anti-competitive practices by securing its dominant position in online search.
During the cross-examination, government attorneys highlighted Google’s actions in controlling key distribution channels and exclusive deals with phone manufacturers and web browser-makers that allegedly hindered competition. The prosecution argues that Google’s monopolistic behavior limits consumer choice and hampers innovation in the search market.
To emphasize this point, Department of Justice attorney Meagan Bellshaw presented a 2005 letter from Google’s then-Chief Legal Officer David Drummond to Microsoft’s then-General Counsel Brad Smith. The letter expressed concern over Microsoft’s plans to make its search engine the default on its Internet Explorer browser. Google argued that the default settings on browsers significantly impact user behavior and favored Microsoft’s interests over those of end users.
Bellshaw also questioned Pichai about Google’s own revenue-sharing contracts with phone manufacturers and the lack of choice screens for search engines in those agreements. Pichai admitted that providing a choice screen would not be consistent with the revenue-sharing agreement but maintained that phone manufacturers had the option to decline the offer.
Furthermore, the prosecution delved into Google’s close relationship with Apple, particularly regarding their search deal. Notes from a 2018 meeting between Pichai and Apple CEO Tim Cook revealed Google’s desire to work as if they were one company. Pichai, however, claimed not to recall using that phrase and mentioned that the meeting centered on Apple’s concerns about declining revenue growth on Safari.
The trial also shed light on Google’s approach to retaining internal chat messages, which the DOJ alleged were systematically destroyed. Pichai acknowledged that he was aware of the history-off default setting and took action to change it. However, he clarified that the instances where he requested chat history to be turned off were unrelated to litigation holds. He assured the court that he takes great care to comply with all litigation holds.
Throughout the trial, Pichai’s testimony highlighted Google’s historical efforts to secure its dominant position in the search market and its considerations of user behavior, defaults, and distribution channels. The trial continues as the government seeks to prove that Google’s practices violate antitrust laws, while Google defends its actions as necessary for competition in the digital landscape.
Overall, the trial serves as a critical battleground for the future of the search market, with potential implications for Google’s business practices and the competitive landscape of the tech industry.
