US Judge Rules Google’s Search Monopoly Illegal
In a landmark decision, a US judge has ruled that Google acted unlawfully to crush competition and maintain its monopoly on online search and advertising.
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This ruling, delivered on Monday, is a significant setback for Alphabet, Google's parent company, and could have far-reaching implications for how tech giants operate.
The lawsuit, filed by the US Department of Justice in 2020, accused Google of controlling about 90% of the online search market. This case is part of a broader effort by US antitrust authorities to enhance competition within the tech industry.
US District Judge Amit Mehta stated in his 277-page opinion that Google had paid billions to ensure it remained the default search engine on smartphones and browsers. "Google is a monopolist, and it has acted as one to maintain its monopoly," Judge Mehta wrote.
The decision could lead to substantial changes for Google and Alphabet, though the specific penalties will be determined in a future hearing. The government has requested "structural relief," which could potentially involve breaking up the company.
Alphabet has announced plans to appeal the ruling. "This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available," the company said in a statement.
US Attorney General Merrick Garland praised the ruling as a "historic win for the American people," emphasizing that no company, regardless of size or influence, is above the law.
The ruling follows a 10-week trial in Washington DC, where prosecutors argued that Google spends over $10 billion annually to ensure it is pre-installed as the default search engine on various platforms. This practice has secured a steady stream of user data, bolstering Google’s market dominance.
Google's lawyers contended that users prefer their search engine because of its quality and that the company faces intense competition from other search engines and specialized sites. However, Judge Mehta concluded that Google's default search engine status is "extremely valuable real estate," making it difficult for new competitors to emerge.
Another case concerning Google’s advertising technology is set for trial in September. Meanwhile, in Europe, Google has faced billions in fines over similar monopoly issues.
This decision could reshape the landscape of online search and advertising, highlighting the ongoing battle between regulatory authorities and major tech companies.
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