Published Date: 7/24/24
“Now, sonny, your Grandpa Google isn’t a big bad monopolist. Sure, he’s very rich, and he is 25 years old, but he still knows how to innovate.” That was the gist of one executive’s testimony in Google’s antitrust trial. Testimony was heard from September 12 to November 16, 2023.
According to the tech behemoth, internet users prefer Google Search over alternatives because of its quality. According to the Department of Justice (DOJ), Google shored up its own dominance by negotiating illegal contracts with other tech companies.
And yes, the Google executive really did say that kids these days are calling the search giant “Grandpa Google.” Journalists couldn’t find any evidence to confirm that claim, so we feel free to ridicule it.
The federal judge won’t rule on the case for weeks or months, but the trial did NOT persuade us to Keep Calm and Trust Grandpa Google. On the contrary, we were disgusted by Google’s efforts to prevent questionable business practices from coming to light.
That’s why we decided to highlight damning revelations with another interactive quiz!
Whether your final score is high or low, we hope our quiz will help you understand why we all need to keep a close watch on Google.
Questions
1
Let’s start with some background facts. Approximately what percentage of the U.S. market for internet searches is controlled by Google?
The correct answer is (D) 90%.
The DOJ cited Google’s 90% control as evidence of an illegal monopoly. As the most recent data from Similarweb shows, Google Search is 16 TIMES more popular than its main rival, Bing, which has under 6% of the U.S. market. The next most frequently used search engines are Yahoo, DuckDuckGo, and Ecosia. We hadn’t even heard of the last one – have you? Contrary to Grandpa Google’s complaints, he isn’t exactly in danger of being forgotten in some sad, dark corner while the young’uns dance on TikTok.2
We’ll continue with a question about Google’s conduct. How much money did Google pay to other companies in 2021 in return for making Google Search the default search engine on their devices or apps?
The correct answer is (C) $26 billion.
A court exhibit showed that Google’s spending on default agreements rose from $7.1 billion in 2014 to $26.3 billion in 2021. The DOJ has argued that Google uses the default agreements to shut out competitors. Although Google claims that default settings are easy for consumers to change, a behavioral economist testified that they gave Google a “sizable and robust” advantage. Grandpa Google said he’s confident in his own abilities … so why did he try to buy our love with $26 billion?3
It’s time to consider the impact of Google’s deals on other software developers. Which of the following companies was unfairly shut out of the internet search market, according to testimony from its CEO?
The correct answer is (E) All of the above.
Here is what the CEOs had to say. Sridhar Ramaswamy, CEO of Neeva, testified that his search engine couldn’t reach the 2.5% U.S. market share it needed to turn a profit. Unfortunately, Ramaswamy explained, “The payments [that Google makes to other companies] effectively make the ecosystem exceptionally resistant to change.” Gabriel Weinberg, CEO of DuckDuckGo, testified that his privacy-centered search engine managed to achieve a U.S. search market share of 2.5% and become profitable, but his company cannot grow any further. “The search defaults,” he said, “are the primary barrier.” Satya Nadella, CEO of Microsoft, testified that his company’s search engine, Bing, finally became profitable – thanks to $100 billion invested over two decades. He offered Apple $10 billion to make Bing the default in the Safari browser, but the proposal was a nonstarter because of Apple’s lucrative deal with Google. As Nadella said, “Everybody talks about the open web, but there is really the Google web.” Comparing the experiences of a failed startup, a profitable but frustrated company, and a tech titan, we believe it’s clear that Google has rigged the game in its favor.4
Now that we’ve established some of the main facts and arguments, let’s take a look at Google’s special relationship with Apple.
We previously told you how much Google spent on default agreements in 2021, but how much money did Google pay that year to Apple alone?
The correct answer is (D) $18 billion.
The astounding figure was leaked to The New York Times. It represents almost $70% of Google’s budget for default agreements in 2021. Eventually, court documents revealed that the payment rose to $20 billion in 2022. God knows what Google paid Apple in 2023 or 2024. Apple has not released a search engine of its own for some mysterious reason.5
We’ll conclude with two brief questions about Google’s financial fortunes over the past four years. Approximately what was Google’s market cap when the federal lawsuit was filed in October 2020?
The correct answer is B) $1 trillion.
The figure was reported here.6
Finally, what was Google’s market cap when closing arguments took place in May 2024?
The correct answer is D) $2 trillion.
The figure was reported here. As you can see, Google has been taking its dubious default agreements to the bank!Scorecard
To find out how you did on the quiz, tally correct answers and consult the following chart. It will give you some advice about your relationship with Google.
0-2 Correct Answers.
Maybe you were trying to mind your own business, but Grandpa Google pulled a fast one on you! Now that you know about his wily ways, you won’t be caught unaware.
3-4 Correct Answers.
Grandpa Google creeps you out, probably because he’s always snooping around on your computer and smartphone. You don’t trust him, and rightly so, but some details of his schemes have escaped your notice. Stay on guard in the future.
5-6 Correct Answers.
You have been watching Grandpa Google like an Australian shepherd on patrol. Excellent work! He may deserve a bite, but please, limit yourself to barking. We want Grandpa Google to face legal consequences, not you.
Thank you for taking our quiz! If you agree that Google has been up to no good, then help us spread the word! You can start by forwarding this quiz to your family and friends.
