A US judge has ruled that Google acted illegally to crush its competition and maintain a monopoly on online search and advertising. This landmark decision, made on Monday, significantly impacts Alphabet, Google’s parent company, and could reshape how tech giants do business.
The US Department of Justice in 2020 sued Google for controlling about 90% of the online search market. This case is one of several filed against big tech companies as US antitrust authorities seek to strengthen competition in the industry.
This ruling poses an existential threat to Google due to its dominance in search and online advertising. It is still unclear what penalties Google and Alphabet will face. Fines or other remedies to be decided in a future hearing. The government has requested “structural relief,” which could mean breaking up the company.
US District Judge Amit Mehta stated that Google paid billions to ensure it remained the default search engine on smartphones and browsers. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Mehta wrote in his 277-page opinion. Alphabet plans to appeal, stating the decision recognizes Google’s superior search engine but restricts its availability.
US Attorney General Merrick Garland hailed the ruling as a “historic win for the American people”. He emphasized that no company, regardless of size or influence, is above the law. Federal antitrust regulators have other pending lawsuits against big tech companies. These include Meta, Amazon, and Apple, accusing them of operating unlawful monopolies.
Prosecutors accused Google of spending billions annually to be the default search engine across platforms, typically paying more than $10 billion a year for this privilege. Google’s lawyers argued that users prefer their search engine for its usefulness. Another case against Google over its advertising technology is scheduled for trial in September. Meanwhile, in Europe, Google has been fined billions in monopoly cases.
