Welcome to POLITICO’s West Wing Playbook, your guide to the people and power centers in the Biden administration and Harris campaign. Send tips | Subscribe here | Email Eli | Email Lauren It may prove to be one of the most consequential outcomes of JOE BIDEN’s presidency: A judge ruled last week that Google has acted illegally to maintain a monopoly in internet search — the first major antitrust ruling against a technology giant and one that could change how we all use the web. Judge AMIT P. MEHTA of the D.C. district court has yet to determine the legal remedies for Google’s years of spending — billions annually — to be the default browser on Apple and other platforms. And the search engine plans to appeal. But the ruling is still the most significant fulfillment of the high hopes within the antitrust community around the ambitions of a vaunted trio of officials with aims of reining in Big Tech (dust off those Wu & Khan & Kanter mugs, folks). To unpack the ruling and its impact, West Wing Playbook spoke with JONATHAN KANTER, who leads the Department of Justice’s antitrust division. This conversation has been edited for length and clarity. Okay, for those who haven’t been following, how big is this ruling? And what will it mean? This is the most important case about the internet since the internet. The court concluded that Google is a monopolist and that it illegally maintained its monopoly. This is a victory for the rule of law. And it means that internet companies, like every other company in the country, are accountable under the antitrust laws, and that the values of competition and the competitive economy that delivers benefits to the entire public is something that not only we should care about in connection with the internet, but something we should fight to protect now. They argued that their product was simply the best. And you convinced the judge that, no, Google is illegally stifling competition. Why does that matter? A lot of people like Google! All companies, including monopolies, do better when they face competition. Competitors force companies to deliver better products. They force companies to deliver less expensive products. They force companies to deliver more innovative products. We want the competitive process to work so that new companies, startups, innovators, small-, medium-sized players can realize their dream of building the next great, innovative U.S. company. How will this change Google’s business and the internet? How will people experience the internet differently because of this? We also want competition with respect to quality. That means the search results can get even better, or can help connect consumers and users to better information on the internet and allow more information on the internet to connect with consumers. Also, advertising is one of the most significant costs of American businesses, especially small businesses, who pay lots of money every year to generate customers through advertising on products like search. We want prices to come down so that those small businesses can generate consumers and build their businesses with all the benefits of competition, including price competition for advertising. Google became Google, at least in part, because a DOJ antitrust lawsuit against Microsoft in the '90s opened up the early internet. Some have suggested this victory has similar implications for AI. Do you agree? The beauty of competition and antitrust is that it doesn’t pick winners and losers. It protects a process, the competitive process, that allows companies of all sizes and shapes to succeed. And so past antitrust cases, including the case against Microsoft, opened and paved the way for the next generation of internet companies, including companies like Google. We want to make sure that those new startups, those new developers, those new innovators, have the opportunity to reach the market. At the same time, we want to make sure that the existing large companies feel that competitive pressure and use it to drive them to produce more and to produce better for the American public. After the decision, the White House released a statement saying, “This pro-competition ruling is a victory for the American people” and that “Americans deserve an internet that is free, fair, and open to competition.” Have you gotten any additional, more personal outreach from the White House after this ruling came down? Let me start by saying that our law enforcement is completely independent, and we follow the facts and law, we bring cases based on the facts and law to ensure that we are holding companies accountable. Separate from that, I will say that the Biden-Harris administration has been the most forward thinking, innovative and impactful with respect to competition policy. It has supercharged the ability to infuse competition policy throughout the government. Its executive order has allowed us to work more closely with the Department of Agriculture, the Department of Transportation, Health and Human Services, the NLRB, the Department of Labor and so many others to make sure that competition is a value that allows and opens up our economy to the benefit of all. Since a transition in January is guaranteed, how does that change your work? Is there a rush to get things filed over these next five months? Again, we operate independently. And so my focus day in and day out is putting one foot in front of the other and making sure that we are fighting for the rule of law. No rush to get things filed now? We have and will continue to work at the pace dictated by the facts in the law. Do you think about this ruling as part of your own personal legacy? This is an extremely important moment to the extent that there were any questions about whether the antitrust laws or the Department of Justice antitrust division is up to the task of forcing on the internet. I think we've answered that question decisively. This one goes on the Mount Rushmore of antitrust cases. What else is on there? Microsoft, AT&T, Standard Oil. You know, Donald Trump has suggested adding himself to the actual Mount Rushmore. Will there be a fifth case from this administration on your antitrust Mount Rushmore? Time will tell. MESSAGE US — Are you MICHAEL KONCZAL, special assistant to the president for economic policy? We want to hear from you. And we’ll keep you anonymous! Email us at westwingtips@politico.com. DNC COUNTDOWN: Are you headed to the 2024 Democratic convention in Chicago? Join POLITICO in Chicago for live, in-person conversations with the Democratic Party’s biggest newsmakers. Sign up here to get notified once registration opens. ABOUT THAT POD SAVE AMERICA PARTY… In Monday’s edition of West Wing Playbook, we included in our guide to DNC parties a Thursday night “Pod Save America Fest” at The Salt Shed. Multiple DNC insiders had informed us of this big bash closing out the convention, but a spokesperson for Crooked Media reached out to us last night to say that the event was not happening and they ran out of money had no idea where the rumor was coming from. Did someone forward this email to you? Subscribe here!
|