Google hits back after being sued by the US government in landmark antitrust case

(AFP via Getty Images)

Google has responded to being sued by the US government, which has accused it of abusing its size to hurt customers.

A new lawsuit – the biggest antitrust case since a crackdown on Microsoft more than 20 years ago – says that the company has used its dominance over online search and advertising to stifle competition and harm consumers.

The case was hailed by lawmakers, who desired the company as a “behemoth”. “It has maintained its monopoly power through exclusionary practices that are harmful to competition,” said US deputy attorney general Jeff Rosen.

But Google hit back against the case, calling the US government’s accusations wrong.

“Today's lawsuit by the Department of Justice is deeply flawed," the company wrote in a tweet.

"People use Google because they choose to - not because they're forced to or because they can't find alternatives."

Lawmakers and consumer advocates have long accused Google, whose corporate parent Alphabet has a market value just over $1 trillion, of abusing its dominance in online search and advertising to stifle competition and boost its profits. Critics contend that multibillion-dollar fines and mandated changes in Google's practices imposed by European regulators in recent years weren't severe enough and that structural changes are needed for Google to change its conduct.

The Justice Department isn't seeking specific changes in Google's structure or other remedies at this point, but isn't ruling out seeking additional relief, officials said.

Google responded immediately via tweet: "Today's lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to - not because they're forced to or because they can't find alternatives."

The case was filed in federal court in Washington, D.C. It alleges that Google uses billions of dollars collected from advertisers to pay phone manufacturers to ensure Google is the default search engine on browsers. Eleven states, all with Republican attorneys general, joined the federal government in the lawsuit.

But several other states demurred. The attorneys general of New York, Colorado, Iowa, Nebraska, North Carolina, Tennessee and Utah released a statement Monday saying they have not concluded their investigation into Google and would want to consolidate their case with the DOJ's if they decided to file.

"It's a bipartisan statement," said spokesman Fabien Levy of the New York State attorney general's office. “There's things that still need to be fleshed out, basically.”

President Donald Trump's administration has long had Google in its sights. One of Trump's top economic advisers said two years ago that the White House was considering whether Google searches should be subject to government regulation. Trump has often criticized Google, recycling unfounded claims by conservatives that the search giant is biased against conservatives and suppresses their viewpoints, interferes with U.S. elections and prefers working with the Chinese military over the Pentagon.

Rosen told reporters that allegations of anti-conservative bias are "a totally separate set of concerns" from the issue of competition.

Google controls about 90% of global web searches. The company has been bracing for the government's action and is expected to fiercely oppose any attempt to force it to spin off its services into separate businesses.

The company, based in Mountain View, California, has long denied the claims of unfair competition. Google argues that although its businesses are large, they are useful and beneficial to consumers. It maintains that its services face ample competition and have unleashed innovations that help people manage their lives.

Most of Google's services are offered for free in exchange for personal information that helps it sell its ads. Google insists that it holds no special power forcing people to use its free services or preventing them from going elsewhere.

Additional reporting by agencies