Sundar Pichai is set to give testimony in a significant antitrust case regarding Google’s dominance in search and advertising.
Sundar Pichai, CEO of Alphabet and its subsidiary Google, is set to testify on Monday in a significant antitrust case related to Google’s control of search and specific aspects of search advertising, according to a report by Reuters.
Pichai, representing Google, is likely to face questions regarding the company’s efforts to stay competitive in the search industry, especially with the growth of smartphones, and its innovations in search advertising.
During cross-examination, government officials may inquire about the substantial yearly payments Google makes to secure its search engine as the default option on smartphones.
What is the trial focused on? The U.S. government alleges that Google, with a dominant share of approximately 90 percent in the search market, unfairly paid an estimated annual sum of $10 billion to smartphone manufacturers like Apple and wireless carriers such as AT&T, among others, to ensure that its search engine is the default choice on their devices, thereby maintaining its dominance.
Google’s strong presence in search significantly enhances its position in the lucrative advertising sector, leading to increased profitability.
Google has argued that its revenue-sharing agreements are legally sound and has emphasized its investments in maintaining the competitiveness of its search and advertising businesses.
The tech giant has also asserted that users have the option to switch to alternative search providers if they are not satisfied with the default settings, as reported by Reuters.
Previously, Mint reported that Microsoft CEO Satya Nadella testified in the Google antitrust trial held in a Washington DC courtroom. During his testimony, Nadella accused Google of using unfair trade practices to undermine smaller competitors by making deals with smartphone manufacturers. Additionally, Nadella claimed that ‘Kingmaker’ Apple leverages Microsoft’s Bing as a bargaining tool to negotiate higher payments from Google.
While testifying in the Google antitrust trial, Nadella questioned, “Would Google still pay Apple without search competition? What would be their incentive?”
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