Google violated antitrust laws by maintaining monopoly, court rules

August 6, 2024
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Google violated antitrust laws by maintaining monopoly, court rules

Photo credit: Christian Wiediger/Unsplash

Google has been found to violate United States antitrust laws by maintaining an illegal monopoly in online search and advertising, according to a ruling by US District Judge Amit Mehta.

The decision made public on Aug. 5, is a significant victory for the Department of Justice, which accused Google of using its dominance to stifle competition and harm consumers. Observers have also argued that the landmark decision could reshape the landscape of the internet.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” Mehta noted.

The antitrust case against Google, filed in 2020, alleged that the company illegally maintained its dominance in the search market by excluding competitors. According to the DOJ, the tech giant controls approximately 90% of the US search market.

The ruling highlights how Google spent billions to secure its position as the default search engine on devices made by companies like Apple and Samsung.

The court found that Google’s agreements with device manufacturers, which make its search engine the default option, significantly hinder competition. In 2021 alone, Google paid more than $26 billion to maintain these agreements.

Google plans to appeal the decision, arguing that its market share reflects the quality of its search engine rather than anticompetitive conduct. Kent Walker, Google’s President of Global Affairs, reportedly stated, “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available.”

The ruling does not specify penalties but opens the door for potential remedies that could alter Google’s business practices. This case is part of a broader effort by US authorities to scrutinize major tech companies’ market behavior, with other giants like Amazon, Meta, and Microsoft, also facing antitrust challenges.

The court will determine remedies for Google’s violations in future proceedings, which could include significant changes to its business operations. Meanwhile, Google faces another antitrust trial in September focused on its advertising technology.

Read more: OpenAI announces AI-backed search engine prototype to rival Google

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