Google, Apple now threatened by US antitrust laws helped build their tech empires

SAN FRANCISCO: The US Justice Department’s double-barrelled antitrust attack on Google’s dominant search and Apple’s trendsetting iPhone is reviving memories of the epic battle that hobbled Microsoft before it roared back to yet again become the world’s most valuable company.

The parallels to the Justice Department’s landmark antitrust case in 1998 could provide a window into the potential breakthroughs that could be unleashed if regulators succeed in their attempts to crack down on Google and Apple.

Federal lawyers have even gone as far as to assert Google and Apple may never have created so many popular products or become as powerful as they are now if Microsoft hadn’t been reined in a quarter century ago.

In closing arguments of a Washington, DC, trial that began last September, regulators Thursday will apply the finishing touches to a case alleging Google has turned its search engine into an illegal monopoly that stifles competition and innovation. The Apple case, which was only filed a month ago, is still years away from its resolution.

Although regulators have lodged separate complaints against Google and Apple, the two cases are shadowed by Microsoft’s legal saga that began when both those were mere specks on the technology landscape.

When they went after Google in October 2020, regulators compared the lucrative deals that the company cut with Apple to lock its search engine into the iPhone and Safari web browser to the same tactics Microsoft deployed in its personal computer software to block competition.

And in the antitrust lawsuits that they filed against Apple last month, the Justice Department pointed back to complaints that company co-founder Steve Jobs had raised in 1998 against Microsoft’s “dirty tactics” while urging regulators to take steps to force the PC software maker “to play fair”.

And that is what the Justice Department did in an antitrust case against Microsoft that caused massive distractions that opened the door for Google’s search engine to become the internet’s main gateway. It also culminated in a series of concessions that paved the way for Apple to extend the reach of its iTunes music store that increased the popularity of the iPod that spawned the iPhone.

The Microsoft case “created new opportunities for innovation in areas that would become critical to the success of Apple’s consumer devices and the company itself”, the Justice Department crowed in the lawsuit that casts the iPhone as an illegal monopoly.

After years of mostly fruitless attempts to compete against Google’s search engine and the iPhone under the leadership of Steve Ballmer, Microsoft began to regain its stride when Satya Nadella became CEO in 2014.

Earlier this year, Microsoft’s market value hit $3 trillion for the first time, surpassing Apple as the world’s most valuable company while taking the early lead in artificial intelligence technology that’s expected to reshape the world.