A US court has ruled that Google has illegally maintained a monopoly in the online search market, in a major blow to the tech giant’s dominance. The ruling comes after a successful lawsuit filed by the US Justice Department and a coalition of states, which argued that Google used its financial power to secure its position as the most used search engine.
According to the government and 38 states and territories, including Colorado and Nebraska, Google’s practice of paying smartphone makers billions of dollars to make its search engine the default option on browsers and devices created barriers for new and smaller search engines, and solidified Google’s grip on the market.
This ruling is part of the ongoing efforts by US regulators to limit the power of major tech companies such as Google, Apple, Amazon, and Meta. The Justice Department and the Federal Trade Commission (FTC) have been pursuing cases against these companies in an effort to promote competition and prevent monopolies.
The court’s focus was on Google’s exclusive search agreement with Android, iPhones, and iPads. The Justice Department argued that Google controls nearly 90% of web searches, a claim that Google has denied. Additionally, the case also looked at Google’s lucrative ad business, with the plaintiffs arguing that the company’s monopoly in search results has resulted in inflated ad prices, demonstrating Google’s overwhelming power.
In response to the ruling, Google defended its practices, stating that it has created a better service for consumers and that its popularity is a result of its superior product. “Google is winning because it’s better,” the company stated.
No specific remedy was outlined by Judge Amit Mehta of the US District Court for the District of Columbia. He could potentially order Google to divest a portion of its business or change its operating practices. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta stated in his ruling.
Google now has the opportunity to appeal the decision. It remains to be seen how this ruling will impact the company’s operations and the broader landscape of the tech industry.
