A federal judge has determined that Google has been unlawfully leveraging its dominance in the search engine market to suppress competition and hinder innovation.
On Monday, U.S. District Judge Amit Mehta issued a landmark ruling against Google, concluding that the tech giant’s overwhelming control over internet search has been used to maintain a monopoly, potentially disrupting the company and the broader internet ecosystem.
This ruling comes nearly a year after a major antitrust trial involving the U.S. Justice Department and Google, marking the most significant case of its kind in 25 years.
Judge Mehta’s decision followed an extensive review of evidence, including testimonies from executives at Google, Microsoft, and Apple, gathered during a 10-week trial. Mehta issued his 277-page ruling three months after the trial concluded, stating, “Google is a monopolist, and it has acted as one to maintain its monopoly.”
According to the ruling, Google commands an 89.2% market share for general search services, which rises to 94.9% on mobile devices, underscoring its monopolistic status.
This decision is a significant blow to Google and its parent company, Alphabet Inc., which has consistently argued that its dominance is due to consumer preference for a superior search engine. According to a study by the investment firm BOND, Google’s search engine handles approximately 8.5 billion queries daily worldwide worldwide, nearly twice the volume from 12 years ago.
Kent Walker, Google’s president of global affairs, indicated the company’s intent to appeal the ruling, stating, “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available.”
This ruling is a victory for the Justice Department, supporting its efforts to regulate Big Tech. Attorney General Merrick Garland emphasized, “This victory against Google is a historic win for Americans. No company—no matter how large or influential—is above the law.”
The case portrayed Google as a technological behemoth that systematically stifled competition to protect its lucrative search engine, which generated nearly $240 billion in revenue last year. Prosecutors argued that Google’s monopoly allowed it to charge exorbitant prices to advertisers while neglecting to improve its search engine, to the detriment of consumers.
Judge Mehta highlighted the billions of dollars Google spends annually to ensure its search engine is the default on new cell phones and tech gadgets, noting that in 2021 alone, Google spent over $26 billion on these default agreements.
Google dismissed these allegations, pointing out that users have historically switched search engines when dissatisfied with the results. However, Mehta underscored the significance of default settings, noting that Microsoft’s Bing controls 80% of the search market on the Microsoft Edge browser, demonstrating that other search engines can thrive without Google’s default status.
While acknowledging Google’s superior search engine quality, Mehta criticized its monopolistic practices. The ruling sets the stage for determining appropriate remedies or penalties to foster a more competitive market, with a hearing scheduled for September 6.
Potential outcomes could range from requiring Google to dismantle parts of its internet empire to preventing it from securing default search agreements on devices. Evelyn Mitchell-Wolf, an analyst at Emarketer, noted that Google’s loss could have significant implications, depending on the remedies imposed.
Despite the ruling, a prolonged appeals process is anticipated, potentially delaying immediate effects for consumers and advertisers. Cornell University law professor George Hay estimated that the appeals process could extend up to five years, allowing Google to avoid a ban on default search agreements temporarily but not protect it from class-action lawsuits over monopolistic pricing.
A significant shakeup could benefit Microsoft, reminiscent of its antitrust battle in the late 1990s, ultimately creating opportunities for Google. The ruling might also impact Apple’s profits, as Google has paid Apple substantial sums to remain the iPhone’s default search engine.
The Justice Department has recently taken on several major companies, including Apple, Ticketmaster, Microsoft, Nvidia, and OpenAI, reflecting a broader effort to curb Big Tech’s influence under the Biden administration.
Google faces additional legal challenges in the U.S. and abroad. Another federal trial in Virginia is scheduled for September over allegations of monopolistic practices in its advertising technology.
