U.S. District Judge rules Google has violated antitrust laws to preserve a search monopoly dominance.
The court heard Google paid billions to smartphone makers to be the default on devices and browsers.
The ruling is a big win for the U.S. federal department, which is tackling Big Tech’s global market dominance and could have lasting effects on how people get their online information.
Google unlawfully maintained an online search monopoly
The US Justice Department brought Google to federal court, accusing the tech giant of violating antitrust laws.
The argument was Google created and continues to maintain an illegal monopoly in online search by paying billions to smartphone makers to make it the default search engine.
U.S. District Judge Amit Mehta wrote in his ruling:
- “Google is a monopolist, and it has acted as one to maintain its monopoly.”
Google’s exclusive search agreement
The court proved its accusation of monopolizing search results by focusing on Goggle’s exclusive default search agreement on iPhones, iPads, and smartphones.
The department argued that Google controls nearly 95% of smartphone searches and 90% of web searches because of its monopoly; Google denies these figures.
Plaintiffs also claimed that Google’s ad pricing was “Above what should exist within a free market,” demonstrating Google’s power to control it.
Google says it is simply better than the rest
Google refuted the courts’ accusation that its global popularity relied on maintaining a monopoly in Search and Google ads, saying it’s popular because it provides better consumer service.
Google’s said:
- “It had created a better service for consumers and was winning because it’s better.”
In a later statement, Google’s president for global affairs, Kent Walker, focused on the judge’s positive comments and said Google would appeal:
- “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available.”
- “We appreciate the Court’s finding that Google is ‘the industry’s highest quality search engine, which has earned Google the trust of hundreds of millions of daily users’, that Google ‘has long been the best search engine, particularly on mobile devices,’ that Google ‘has continued to innovate in search,’ and that ‘Apple and Mozilla occasionally assess Google’s search quality relative to its rivals and find Google’s to be superior.”
- “Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal. As this process continues, we will remain focused on making products that people find helpful and easy to use.”
Google awaits the remedy
Judge Amit Mehta’s ruling did not contain a remedy for resolving Google’s monopoly, and his decision could have enormous consequences for the future of Big Tech.
Metha could instruct Google to address its business practices, change its operations, or force it to sell a percentage of the company.
Big Tech showdown
For years, U.S. regulators, the Federal Trade Commission, and the Justice Department have been trying to lessen the influence and power of Big Tech companies like Google, Meta, Amazon, and Apple.
The landmark ruling could further encourage U.S. antitrust enforcers to continue in the quest to prosecute those found guilty of manipulation or otherwise.
There could be a second trial where Judge Amit Metha decides on potential fixes. If one is to break up Google’s parent company, Alphabet, it could signal a new dawn in Search and advertising.
When he is not writing content, Terry can be found on his boat in Italy or chilling in his villa in Spain.
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