In a groundbreaking ruling on Monday, a US judge declared that Google had acted illegally to crush its competition and maintain a monopoly on online search and related advertising. The decision is a significant blow to Alphabet, Google’s parent company, and could potentially reshape the way technology giants conduct business.
The lawsuit against Google was filed by the US Department of Justice in 2020, citing the company’s control of about 90% of the online search market. This case is just one of several legal battles that have been initiated against big tech companies as US antitrust authorities strive to promote competition in the industry.
US District Judge Amit Mehta, in his 277-page opinion, stated that Google had paid billions to secure its position as the default search engine on smartphones and browsers, solidifying its status as a monopolist. The judge’s ruling has raised questions about the penalties that Google and Alphabet may face, with potential fines or other remedies to be determined in a future hearing.
Alphabet has announced its intention to appeal the decision, asserting that Google provides the best search engine and should be allowed to make it easily accessible. US Attorney General Merrick Garland hailed the ruling as a “historic win for the American people,” emphasizing that no company, regardless of size or influence, is above the law.
The case against Google involved allegations that the company paid substantial amounts to Apple, Samsung, Mozilla, and others to be pre-installed as the default search engine across various platforms. Prosecutors argued that this practice prevented other companies from effectively competing in the market, as Google’s access to user data through these partnerships helped maintain its dominance.
Google’s lawyers defended the company by highlighting its investments in improving the search engine for consumers, emphasizing that Google’s success is a result of providing a superior product. Despite facing competition from other search engines and specialized sites, Google’s position as the default search engine was deemed “extremely valuable real estate” by Judge Mehta.
This ruling comes after a 10-week trial in Washington DC, with another case against Google’s advertising technology scheduled for September. In Europe, Google has already faced significant fines in monopoly cases. The outcome of this legal battle could have far-reaching implications for the tech industry as regulators continue to scrutinize the practices of big tech companies.
