A federal judge has delivered a landmark ruling against Google, declaring the search giant an illegal monopoly. This major win for government regulators could reshape the online landscape.
‘Google is a monopolist,’ declared Judge Amit Mehta, highlighting the company’s dominance with a 90% share of the search engine market and presence on 95% of smartphones.
The lawsuit, initiated under the Trump administration, targeted Google’s practice of paying billions to ensure its search engine remains the default on various devices. Judge Mehta pointed out Google’s staggering $26.3 billion spent on such deals in 2021 alone.
‘Defaults are extremely valuable,’ wrote Mehta, emphasising the near-impenetrable barrier such practices create for competitors.
This ruling sets the stage for a second trial to determine remedies, potentially including the break-up of Google’s parent company, Alphabet. This could significantly alter online advertising, a domain Google has long dominated.
‘A historic win for Americans,’ proclaimed Attorney General Merrick Garland, emphasising the principle that no company is above the law.
Google, however, plans to appeal, claiming the ruling unfairly restricts their ability to offer consumers the ‘best search engine.’
The legal battle could be lengthy, potentially reaching the Supreme Court by 2026. Already, Alphabet’s stock has dipped 4.5%, reflecting the potential impact on their advertising revenue, which accounted for 77% of total sales in 2023.
This verdict is part of a broader U.S. effort to curb Big Tech dominance, with ongoing antitrust cases against Meta Platforms, Amazon, and Apple.
Senator Amy Klobuchar, a leading voice in antitrust reform, hailed the decision, highlighting the importance of competition for American consumers.
