Sundar Pichai, the CEO of Alphabet and its subsidiary Google, is set to testify on Monday in a significant antitrust legal battle that revolves around Google’s dominant position in the search and search advertising sectors.
Pichai, appearing as a witness for Google, is expected to face questions regarding the company’s strategic investments aimed at maintaining competitiveness in the search industry, especially in light of the increasing prevalence of smartphones, as well as innovations in search advertising.
During cross-examination, the government is likely to inquire about the substantial sums of money Google pays annually to secure its position as the default search engine on smartphones.
The government’s argument asserts that Google, which holds a staggering 90 per cent share of the search market, engaged in illegal practices by allegedly paying approximately $10 billion per year to smartphone manufacturers like Apple and wireless carriers such as AT&T to ensure that Google search remains the default option on their devices.
This arrangement has solidified Google’s supremacy in the highly profitable advertising market, bolstering its earnings.
Google, in its defence, contends that its revenue-sharing agreements are entirely legal and that the company has made substantial investments to ensure the competitiveness of its search and advertising businesses.
Google also argues that consumers have the option to choose alternative search providers if they are dissatisfied with the default settings, and many users do exercise this choice.
The outcome of this legal battle will likely have far-reaching implications for the tech giant’s dominance in the search and advertising industries.
(With input from agencies)
from Firstpost Tech Latest News https://ift.tt/5SPs4ZF
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