A US federal judge has ruled that Google violated monopoly laws by leveraging its market dominance in online searches to suppress competition, a landmark decision that could reshape the operations of America’s largest tech companies.
Handling approximately 90 per cent of global internet searches, Google exploited its leading position to exclude rivals, the court found. This ruling marks the first significant antitrust victory for the US Justice Department in over two decades.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” wrote Judge Amit P. Mehta in a comprehensive 276-page decision. This case is the initial ruling in a series of lawsuits targeting alleged technology monopolies.
In 2021, Google spent $26.3 billion to secure its search engine as the default on smartphones and web browsers, maintaining its dominant market share, the judge noted.
Mehta’s decision against Google, owned by Alphabet, sets the stage for a second trial to determine corrective measures, potentially including a ban on payments to smartphone manufacturers for setting Google as the default search engine.
The Justice Department accused Google of monopolistic practices and abusing its power for profit during the trial, which commenced in September.
Google CEO Sundar Pichai, in his testimony, acknowledged the critical importance of having Google set as the default search engine on various devices to retain user loyalty, stating, “We definitely see value.”
Google’s legal team refuted claims of anticompetitive behaviour, arguing that the default status had limited impact and that dissatisfied users could easily switch.
Initiated by the Trump administration, this case is one of five targeting the market dominance of tech giants. A second antitrust lawsuit was also filed against Facebook’s parent company Meta during Trump’s tenure. Under President Biden, additional cases have been brought against Google, Apple, and Amazon.
US Attorney General Merrick Garland hailed the ruling, stating: “This victory against Google is a historic win for the American people. No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”
Google intends to appeal the ruling. Kent Walker, Alphabet’s president of global affairs, commented: “This decision recognises 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’… 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.”
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Google found in breach of monopoly laws over online searches