(qlmbusinessnews.com Wed. 7th Aug, 2024) London, UK —
US Judge Declares Google’s Search Monopoly Illegal.
In a landmark ruling, a US judge has declared that Google acted illegally to maintain its monopoly over online search and related advertising, dealing a significant blow to Alphabet, Google’s parent company. This decision, which has the potential to reshape the business practices of major technology firms, follows a lawsuit filed by the US Department of Justice in 2020, targeting Google’s control of roughly 90% of the online search market.
The ruling marks one of several high-profile legal challenges faced by big tech companies as US antitrust authorities strive to foster greater competition within the industry. Described by some as an existential threat to Google and Alphabet due to their dominance in search and online advertising, the case’s penalties and remedies will be determined in a future hearing. The government has requested “structural relief,” which could theoretically lead to a break-up of the company.
US District Judge Amit Mehta, in his 277-page opinion, highlighted that Google paid billions to secure its position as the default search engine on smartphones and browsers. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta asserted.
In response, Alphabet announced plans to appeal the ruling, arguing that the decision acknowledges Google’s search engine superiority but unfairly restricts its availability. “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” the company stated.
US Attorney General Merrick Garland praised 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 Justice Department will continue to vigorously enforce our antitrust laws,” Mr Garland added.
The ruling follows a 10-week trial in Washington DC, where prosecutors accused Google of spending billions annually to ensure it remained the default search engine on platforms operated by Apple, Samsung, Mozilla, and others. The prosecution argued that these payments, exceeding $10 billion annually, secured Google’s dominance by maintaining a constant stream of user data, thereby preventing competitors from gaining a foothold in the market.
During the trial, the Department of Justice lawyer Kenneth Dintzer highlighted the significance of these default arrangements, pointing to Google’s substantial financial commitments as evidence. Google’s search engine, a major revenue generator, brings in billions through advertising displayed on its results pages.
Google’s legal team defended the company by asserting that its search engine’s popularity stems from its superior utility, with lawyer John Schmidtlein stating, “Google is winning because it’s better.” Schmidtlein also argued that Google faces significant competition from other general search engines like Microsoft’s Bing, as well as specialised sites and apps for specific needs such as restaurant searches and airline bookings.
Judge Mehta concluded that being the default search engine constitutes “extremely valuable real estate” for Google. He noted that any new competitor would need to be prepared to pay billions in revenue shares to challenge Google’s entrenched position.
In addition to this case, Google faces another upcoming trial over its advertising technology in September. In Europe, the company has already been fined billions in similar monopoly cases.
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