Google, the tech giant that has dominated the online search market for years, has recently been dealt a significant blow by a US judge. On Monday, August 8, it was ruled that Google had violated antitrust law by constructing an illegal monopoly and becoming the world’s default search engine. This ruling marks a major victory for federal authorities in their efforts to challenge Big Tech’s market dominance.
The judge’s decision paves the way for a second trial to determine potential remedies for Google’s anticompetitive behavior. This could include breaking up Google’s parent company, Alphabet, which has long been accused of wielding too much power in the online advertising landscape. With Google controlling about 90% of the online search market and 95% on smartphones, the ruling signals a shift in how US antitrust enforcers are approaching Big Tech companies.
In his ruling, U.S. District Judge Amit Mehta of Washington, D.C., stated that Google is a monopolist and has acted as one to maintain its monopoly. This decision could have far-reaching implications for Google and the tech industry as a whole. However, the legal battle is far from over, as Google is expected to appeal the ruling, potentially dragging the case out for years.
Shares of Alphabet fell 4.5% following the ruling, reflecting the uncertainty surrounding the company’s future. Google advertising makes up a significant portion of Alphabet’s total sales, making it vulnerable to any changes that may result from the antitrust case. Despite the setback, Alphabet has stated its intention to appeal the ruling, arguing that Google provides the best search engine and should be allowed to make it easily available.
US Attorney General Merrick Garland hailed the ruling as a historic win for the American people, emphasizing that no company, regardless of its size or influence, is above the law. The White House also weighed in, with press secretary Karine Jean-Pierre calling the decision a victory for competition and emphasizing the importance of a free and fair internet for all Americans.
This ruling is just the latest in a series of cases challenging alleged monopolies in Big Tech. Over the past four years, federal antitrust regulators have also taken legal action against companies like Meta Platforms, Amazon, and Apple, accusing them of illegally maintaining monopolies. The outcome of these cases could have a significant impact on the tech industry and shape the future of competition in the digital space.
Overall, the ruling against Google highlights the growing scrutiny and pushback against Big Tech companies that have long been accused of stifling competition and innovation. As the legal battle continues to unfold, the tech industry and consumers alike will be closely watching to see how this landmark case ultimately reshapes the digital landscape.