WASHINGTON – Google violated antitrust law and created an illegal monopoly to become the world’s default search engine, a US judge ruled on Monday.
The verdict is a massive victory against the Big Tech whose market dominance has raised serious questions around the world, especially in a free market which requires fair competition.
It was the US Department of Justice which had sued Google in 2020 over its control of about 90% of the online search market. Meanwhile, the share jumps to 95% in the case of smartphones.
Google advertising was 77% of Alphabet’s total sales in 2023, the details provided by Reuters and BBC show.
GAME CHANGER
The verdict is a first big win for federal authorities in their attempt to end the monopoly of Big Tech.
It paves the way for a second trial to determine potential fixes, possibly including a breakup of Google parent Alphabet, which would change the landscape of the online advertising world that Google has dominated for years.
More importantly, the US antitrust authorities would now be able to prosecute Big Tech that has been under fire from across the political spectrum.
As a result of this ruling, shares of Alphabet fell 4.5% on Monday amid a broad decline in tech shares as the wider stock market cratered on recession fears.
In its reaction, Alphabet said it plans to appeal the verdict.
“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Google said in a statement.
A HISTORIC WIN FOR THE AMERICAN PEOPLE
US Attorney General Merrick Garland described the judgment as “a historic win for the American people”.
“No company – no matter how large or influential – is above the law.”
Similarly, White House press secretary Karine Jean-Pierre said the “pro-competition ruling is a victory for the American people.”
“Americans deserve an internet that is free, fair, and open for competition.”
GOOGLE IS A MONOPOLIST
“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” US District Judge Amit Mehta.
The judge further noted that Google had paid $26.3 billion in 2021 alone to ensure that its search engine is the default on smartphones and browsers.
“The default is extremely valuable real estate,” Mehta wrote.
BIPARTISAN SUPPORT
The latest ruling is given in a case, filed by the Trump administration, went before a judge from September to November of last year.
But the federal antitrust regulators during the past four years have also sued Meta, Amazon.com, and Apple over their illegal monopolies.
That’s why Senator Amy Klobuchar, a Democrat, said the fact that the case spanned administrations shows strong bipartisan support for antitrust enforcement.
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