WASHINGTON — The U.S. Department of Justice (DOJ) monopolization case against online search giant Google has almost run its course. After a major win for the government last year, the U.S. District Court for the District of Columbia is now considering remedies for restoring competition in the markets for online search.
Today, the Progressive Policy Institute (PPI) released a new report, “Antitrust Remedies and U.S. v. Google: Putting the Consumer Back into the ‘Fix,’” authored by Diana L. Moss, Vice President and Director of Competition Policy at PPI. The report unpacks the government’s proposed remedies against the backdrop of antitrust’s bedrock consumer welfare standard. The standard plays an important role in the District Court’s ultimate determination of whether the remedies in U.S. v. Google (2020) are in the public interest.
“History is clear that consumers benefit from antitrust remedies that succeed in restoring competition in a market and bear the burden of those that fail,” said Moss. PPI’s report notes that the remedies debate is not over any single “fix” but the DOJ’s complex package of structural and conduct fixes designed to open up markets to competition by new search engines.
Set against the complex backdrop of digital ecosystems, PPI argues that the DOJ’s remedies do not account for the impact on consumers under the full scope of the consumer welfare standard. This includes incentives to innovate and improve quality, such as protecting user privacy and data security. Moreover, the DOJ’s remedies entail a sweeping restructuring of the online search market and a decade of “quasi-regulation” of a standalone search platform — with lasting effects on the broader search ecosystem.
Moss explained that, “A strong remedy is needed to restore competition in online search, but the complexity of the government’s proposed fix could well have unintended, adverse effects on consumers.” The District Court has the unique opportunity in U.S. v. Google to ensure a strong remedy that restores competition while striking a better balance to protect consumers under the consumer welfare standard.
Read and download the report here.
The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org. Find an expert at PPI and follow us on Twitter.
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Media Contact: Alex Terr – aterr@ppionline.org
