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, which is a major blow to Alphabet, Google’s parent company, could potentially reshape how technology giants conduct business in the future.
The lawsuit against Google was filed by the US Department of Justice in 2020, citing the company’s control of approximately 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 foster more competition within the industry.
US District Judge Amit Mehta, in his 277-page opinion, stated that Google had paid substantial amounts to secure its position as the default search engine on smartphones and browsers, solidifying its status as a monopolist in the market.
The ruling has raised questions about the penalties that Google and Alphabet may face as a result, with the possibility of “structural relief” being considered, which could potentially lead to the breakup of the company. Alphabet has announced its intention to appeal the decision, emphasizing 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 its size or influence, is above the law. The Justice Department intends to continue enforcing antitrust laws vigorously.
The case against Google involved allegations that the company paid billions annually to secure its position as the default search engine on various platforms, preventing other companies from effectively competing. Google’s lawyers defended the company by arguing that users are drawn to their search engine because of its usefulness and that Google is continually investing to enhance the user experience.
Despite Google’s claims of facing intense competition, Judge Mehta concluded that being the default search engine provides Google with extremely valuable real estate, making it challenging for new entrants to compete without significant financial resources.
This ruling comes ahead of another case against Google related to its advertising technology, scheduled to go to trial in September. In Europe, Google has already faced significant fines in monopoly cases, further highlighting the ongoing scrutiny and legal challenges faced by big tech companies worldwide.
