A federal judge has ruled that Google violated antitrust laws by monopolizing the search and search advertising markets. The decision is a major win for the DOJ and could impact Google’s business practices significantly.
In a landmark decision, US District Court Judge Amit P. Mehta has ruled that Google LLC engaged in illegal monopolistic practices, violating Section 2 of the Sherman Antitrust Act. The ruling, issued on Monday, marks a significant victory for the US Department of Justice (DOJ) and State Attorneys General who have been challenging Google’s dominance in the internet search and search advertising markets for several years.
The court found that Google has maintained an illegal monopoly by implementing unfair practices to preserve its dominance. Central to the case was Google’s strategy of paying approximately $20 billion annually to tech giants like Apple and Samsung to ensure that its search engine is the default option on their devices and browsers. This strategy was deemed to stifle competition and allowed Google to inflate prices for search ads, thereby further solidifying its market control.
Judge Mehta’s ruling emphasized that “Google is a monopolist, and it has acted as one to maintain its monopoly.” The judgment highlights the impact of Google’s practices on competition and pricing within the search engine and advertising markets. Attorney General Merrick B. Garland hailed the decision as a “historic win for the American people,” underscoring the DOJ’s commitment to enforcing antitrust laws against even the most powerful corporations.
In response, Google announced plans to appeal the ruling. Kent Walker, Google’s president of global affairs, pointed to aspects of the judgment that acknowledged the company’s argument about the superior quality of its search engine compared to competitors. Google has also argued that its search contracts with competitors were non-exclusionary and should not be deemed illegal. However, Judge Mehta rejected this argument, noting that such contracts disincentivize manufacturers and developers from creating their own search engines.
This decision follows a series of legal challenges against Google. The DOJ filed a federal antitrust complaint in January 2023, with previous complaints filed in 2020 and April 2022. Additionally, Google faces a class action lawsuit over its Google Maps monopoly and the acquisition of Waze. Another federal trial is scheduled to begin in Virginia later this year, focusing on claims that Google’s advertising technology constitutes an illegal monopoly.
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