Google Violated Antitrust Laws: US Judge Rules

A US District Judge ruled that Google has violated antitrust laws by creating an illegal monopoly through massive financial outlays to secure its position as the default search engine. 

Judge Amit Mehta's decision found that Google, which controls approximately 90 per cent of the online search market and 95 per cent of the smartphone search market, had used its financial clout to maintain its monopolistic hold. 

The ruling paves the way for a second trial to determine appropriate remedies, which could include drastic measures such as breaking up Google’s parent company, Alphabet. Such changes could reshape the landscape of online advertising, a sector where Google has long been a dominant player.

Following the ruling, Alphabet’s shares fell by 4.5 per cent, reflecting market concerns about the potential impact on the company's financial performance. Google, which earned 77 per cent of its revenue from advertising in 2023, faces a prolonged legal process, with potential appeals extending into next year or beyond.

The decision has been hailed as a historic win by US Attorney General Merrick Garland, who said that no company, regardless of its size, is above the law. White House press secretary Karine Jean-Pierre also praised the ruling as a victory for competition and consumer choice.

The case, initially filed during the Trump administration, is part of a broader federal effort to address alleged monopolistic practices among Big Tech companies. Similar lawsuits have been brought against Meta Platforms, Amazon and Apple in recent years.

In his ruling, Judge Mehta mentioned that Google spent USD 26.3 billion in 2021 alone to secure its search engine as the default option on smartphones and browsers, illustrating the immense value and impact of default status in the tech industry. 

(Inputs from Reuters)