Google will be tied up in court for “many years” as it attempts to avoid a crackdown in a pair of major federal antitrust cases targeting its business model, CEO Sundar Pichai admitted in a new interview.
US District Judge Amit Mehta ruled in August that Google operates an illegal monopoly over online search, where it controls a 90% share of the market.
The case is currently in the remedy phase, with Mehta expected to decide on a punishment by next summer.
When asked about the judge’s verdict during an upcoming episode of Bloomberg’s “The David Rubenstein Show: Peer to Peer Conversations.” Pichai said: “We definitely disagree with the ruling, but it’s still in the middle of the remedies phase.”
“We will appeal and this process will likely take many years,” Pichai added.
Elsewhere, Google is currently in court fighting a separate DOJ case alleging it operates a “trifecta of monopolies” through its control of digital ad platforms used by advertisers and publishers as well as an online marketplace that connects them. It will likely be months before Judge Leonie Brinkema issues a ruling in that case.
“Where we can figure out constructive solutions, I think we will,” Pichai said
“Where we think it really harms our ability to innovate on behalf of our users, we are going to be vigorous in defending ourselves,” Pichai added. “It’s going to take time for it to play out.”
Several Wall Street analysts have already warned that Google is unlikely to emerge unscathed from the antitrust clashes — with one telling clients that the tech firm is entering a period of “significant uncertainty” in the near term.
Critics of the company argue an antitrust crackdown is essential to prevent Google from further entrenching its monopoly as it pours resources into artificial intelligence and other burgeoning technologies.
Pichai downplayed the risk, arguing that regulatory scrutiny was inevitable given the company’s scale.
He pointed out that a recent European Union court decision to overturn a $1.7 billion fine against the company took nearly 10 years to resolve.
Google shares were flat in morning trading on Wednesday.
In both cases, the feds are expected to pursue a breakup of Google’s empire, potentially upending a company that generated more than $307 billion in revenue last year.
Google has denied wrongdoing, arguing that it faces tough competition and that customers use its products because of their quality.
The company is set to face another headache in the EU, where regulators are reportedly set to warn Google that it must change its search business practices or face major fines under the bloc’s Digital Markets Act.
