BOOM: Google Loses Antitrust Case – Matt Stoller/BIG

“Search giant Google has lost its first antitrust case in a San Francisco jury trial. The breakup of Big Tech begins.”

“There are a few important take-aways. First, this one didn’t come from the government, it was a private case by a video game maker that sued Google over its terms for getting access to the Google Play app store for Android, decided not by a fancy judge with an Ivy League degree but by a jury of ordinary people in San Francisco. In other words, private litigation, the ‘ambulance-chasing’ lawyers, are vital parts of our justice system.

“Second, juries matter, even if they are riskier for everyone involved. It’s kind of like a mini poll, and the culture is ahead of the cautious legal profession. This quick decision is a sharp contrast with the 6-month delay to an opinion in the search case that Judge Mehta sought in the D.C. trial.

“Third, tying claims, which is a specific antitrust violation, are good law. Tying means forcing someone to buy an unrelated product in order to access the actual product they want to buy. The specific legal claim here was about how Google forced firms relying on its Google Play app store to also use its Google Play billing service, which charges an inflated price of 30% of the price of an app. Tying is pervasive throughout the economy, so you can expect more suits along these lines.

“And finally, big tech is not above the law. This loss isn’t just the first antitrust failure for Google, it’s the first antitrust loss for any big tech firm. I hear a lot from skeptics that the fix is in, that the powerful will always win, that justice in our system is a mirage. But that just isn’t true. A jury of our peers just made that clear.”

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