Google found guilty of antitrust violations

A US judge ruled on Monday that Google violated antitrust law by spending billions to establish an illegal monopoly as the world’s default search engine. Such a landmark decision marks a significant victory for federal authorities challenging Big Tech’s market dominance. The ruling sets the stage for a second trial to determine potential remedies, including breaking up Google’s parent Alphabet, which would significantly alter the online advertising landscape.

Judge Amit Mehta of Washington, D.C., concluded that Google is a monopolist and has maintained its monopoly through unlawful means. Google controls 90% of the online search market and 95% of smartphone searches. The ‘remedy’ phase could be prolonged, followed by possible appeals that might extend the legal battle into the next few years.

Alphabet’s shares fell by 4.5% on Monday amid a broader decline in tech stocks due to recession fears. Google, which plans to appeal the ruling, stated that the decision acknowledges it offers the best search engine but argues it shouldn’t be restricted from making it easily accessible. US Attorney General Merrick Garland hailed the ruling as a historic win for the American people, emphasising that no company is above the law.

The ruling also highlighted that Google paid $26.3 billion in 2021 to secure its search engine’s default status on smartphones and browsers, maintaining its dominant market share. The legal case, filed by the Trump administration, is the first big decision in a series of antitrust cases against Big Tech, including ongoing lawsuits against Meta, Amazon, and Apple.

Senator Amy Klobuchar noted that the case’s progression across administrations demonstrates strong bipartisan support for antitrust enforcement. She praised the ruling as a significant victory for competition, reinforcing that antitrust enforcement remains robust in addressing monopolistic practices.