US judge rules Google’s online search monopoly as illegal.
Google was sued by the Department of Justice in 2020 for its control of about 90% of the online search market.
U.S. judge has determined that Google engaged in illegal practices to stifle competition and uphold its monopoly in online search and advertising. This landmark ruling is a significant setback for Alphabet, Google’s parent company, and may alter the business practices of major tech firms. This case is among several antitrust lawsuits aimed at increasing competition in the tech industry.
This case has been described as an existential threat to Google and its owner, given their dominance in search and online advertising. The specific penalties Google and Alphabet will face are still undetermined and will be decided in a future hearing. The government has requested “structural relief,” which could potentially lead to the company’s breakup.
US District Judge Amit Mehta ruled that Google paid billions to ensure it remains the default search engine on smartphones and browsers. He stated, “Google is a monopolist, and it has acted as one to maintain its monopoly,” in his 277-page opinion. Alphabet intends to appeal the ruling, arguing that the decision acknowledges Google offers the best search engine but wrongly suggests it shouldn’t be easily accessible.
US Attorney General Merrick Garland praised the ruling as a “historic win for the American people,” emphasizing that no company is above the law and that the Justice Department will continue enforcing antitrust laws vigorously. Other Big Tech companies, including Meta Platforms, Amazon, and Apple, are also facing federal antitrust lawsuits.
The ruling follows a 10-week trial in Washington DC, where prosecutors alleged Google spends over $10 billion annually to ensure its search engine is pre-installed as the default across various platforms, securing user data and maintaining market dominance. This practice, prosecutors argued, prevents other companies from competing effectively. DOJ lawyer Kenneth Dintzer highlighted Google’s expenditure on default settings as evidence of their importance.
Google’s search engine generates significant revenue through advertising. Google’s lawyers defended the company’s practices, claiming users prefer their search engine for its utility and continuous improvements. They also argued that Google faces competition from other search engines and specialized sites and apps. Judge Mehta concluded that being the default search engine is highly valuable for Google, as potential competitors would need to invest billions to challenge its position.
Another trial concerning Google’s advertising technology is set for September, while in Europe, Google has been fined billions in monopoly