Search-engine company Google, LLC said Wednesday the U.S. government's antitrust lawsuit against it was "deeply flawed" and users would find it more difficult to access superior search tools and affordable smartphones if it was successful.
Google, Inc. hit back Wednesday in a tweet after being sued by the U.S. government. The U.S. sued Google late Tuesday - accusing the $1 trillion company of illegally using its market muscle to hobble rivals, according to the tweet.
The Justice Department lawsuit might lead to the breakup of the company that has become all but synonymous with the internet and assumed a central role in the day-to-day lives of billions of people around the world, experts said according to several news reports.
This is the first time the U.S. has cracked down on a big-technology company since it sued Microsoft Corp. for anti-competitive practices in 1998.
Justice, joined by 11 states, filed an antitrust lawsuit against Google - the largest ever filed against a big technology company in more than 20 years. It alleges Google's practices have stifled competition and created a monopoly in the online search and advertising market.
The complaint outlined actions taken by Google which have allegedly prevented its rivals from gaining any meaningful market share.
In the suit, Google is accused of paying billions of dollars to smartphone manufacturers and internet browser developers to make its search engine the default setting. It was also accused of forcing those companies not to engage in any deals with its competitors, in some cases.
The complaint alleges that, through its practices, Google has been able to control around 80% of the search distribution channels and general search queries in the U.S. Sources with knowledge of the matter have said that the department was considering a proposal to break up the company. Deputy Attorney General Jeffrey Rosen said that "nothing was off the table," when asked about a possible proposal for a breakup.
"Today's lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to, not because they're forced to, or because they can't find alternatives," Google's senior vice president of global affairs and its chief legal officer Kent Walker said.
Walker said the department's complaints relied on "dubious" arguments that would be detrimental to end-users. He said any action to halt the company's strategy would result in the proliferation of low-quality search alternatives - which would make it harder for people to find what they want online.
In response to the accusation of it paying off smartphone manufacturers and browser developers, Google said that it was no different from other businesses paying other businesses to promote their products. The company said that it was just like how a cereal brand would pay a supermarket to stock its products much closer to the entrance of the establishment or place them at eye level to get more attention.
