A federal judge ruled Monday that Google violated federal antitrust rules to maintain its monopoly in the online search market. This landmark decision could have far-reaching implications for the tech industry.
Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled that Google abused its dominant position to stay on top. "Google is a monopolist, and it has acted as one to maintain its monopoly," Mehta wrote. This is the most significant tech antitrust ruling since the Microsoft case in the 1990s.
The ruling demonstrates that current U.S. antitrust laws can be effectively applied to digital-age companies. It shows that factors beyond customer pricing can convince a judge of monopolistic behaviour. Mehta's ruling addresses Google's liability but does not specify the remedies, so it is unclear what actions Google will be required to take next.
Google and the Justice Department did not immediately comment on the ruling.
The case began in 2020 when the DOJ and several states sued Google for illegal dominance in online search. They focused on Google's billion-dollar contracts with Apple and Mozilla.
"This landmark decision holds Google accountable. It paves the path for innovation for generations to come and protects access to information for all Americans," said DOJ Assistant Attorney General Jonathan Kanter.
Kent Walker, Google's president of global affairs, responded, "This decision recognizes that Google offers the best search engine but concludes that we shouldn't be allowed to make it easily available." Walker added that Google plans to appeal.
Google's defence throughout the trial was that its decisions around search and default settings were aimed at providing the best consumer experience. The company argued that people use Google on their smartphones because they believe it is the best.
However, Google rivals like Microsoft and browsers like DuckDuckGo accused Google of monopolistic behaviour, arguing that smaller browsers cannot compete with Google's scale. They also expressed concerns that such dominance could extend to the race to lead in artificial intelligence.
The DOJ's ruling states that Google monopolizes general search and general search text ad markets. It also found that Google's distribution agreements have anticompetitive effects, and Google did not provide a valid justification for their existence.
Antitrust cases against big tech companies are expected to continue. Another DOJ case focused on Google's advertising technology is set for trial in September, and a DOJ suit against Apple is ongoing. The Federal Trade Commission is also pursuing cases against Meta and Amazon.
Judge Mehta will decide on the remedies for the search case.
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