In the beginning of its antitrust defense, Google credited its achievements to continuous investment, opposing assertions by the government that it violated the law to maintain its competitive edge.
Dr. Raghavan emphasized that concentrating solely on search overlooked the competitive landscape of the internet. He noted that various companies, like TikTok, Expedia, and Booking, are in competition with Google despite not having search engines. He expressed particular concern about “Amazon, one of the two most impactful companies,” and stressed that the key to maintaining a lead in the industry lies in continuous increases in research and development spending.
This perspective, shared by Dr. Raghavan and Michael S. Sommer, a Google representative who questioned him, sharply contrasts with the argument put forth by the Justice Department and 38 states and territories. Over the past seven weeks, they have contended that Google stifled competition by paying substantial sums to companies like Apple and Samsung to ensure that its search engine remained the default option on their web browsers.
The government’s assertion is that Google’s vast scale makes it extremely challenging for other search engines to compete for contracts and users, thereby granting Google significant influence over online advertising and the ability to raise ad prices at its discretion.
Google maintains that users prefer its search engine due to its quality and the ease of switching to alternative services like Microsoft Bing or DuckDuckGo.
Dr. Raghavan emphasized, “Nobody wakes up every morning and says, ‘I have to run a Google query.'” Instead, people choose the best service for their specific needs.
Dr. Raghavan, aged 63, has spent over 11 years at Google, overseeing various operations, including applications, ads, and, as of 2020, the company’s search engine, along with related businesses like Google Maps, Assistant, and commerce products. He has previously focused on research, leading Yahoo Labs and working at IBM Research for 14 years.
Dr. Raghavan acknowledged that Google’s success was not guaranteed and cited challenges in retaining users, particularly among younger demographics. He highlighted that Americans spend about 23 minutes a day browsing the web but nearly four hours using applications. He also pointed out the appeal of TikTok among the youth and noted that older individuals tend to follow where younger people go.
Dr. Raghavan even mentioned a less favorable nickname used by young people to refer to Google: “Grandpa Google knows the answers and will help you with homework, but when it comes to interesting things, they like to start elsewhere.”
During cross-examination, Joshua Hafenbrack, a lawyer for the Justice Department, attempted to challenge Dr. Raghavan’s claim that Google faced a threat from Amazon. He referred to a 2019 competitive analysis by Google that suggested loyalty program members like Amazon Prime users actually increased their searches on Google rather than decreasing them.
Mr. Hafenbrack implied that Google prioritized retaining users and making money over introducing new popular features. He brought up Google’s past consideration of an incognito search engine that didn’t collect user data, asking if Google abandoned the project because it might cost the company substantial revenue.
Dr. Raghavan confirmed that revenue was one of the concerns and added that using the term “incognito” inconsistently across various products was another worry for the company.
“Exciting news! Nyreadtime is now on twitter Channels 🚀 Subscribe today by clicking the link and stay updated with the latest news insights!” Click here!