Google Breached Antitrust Laws, Has an Illegal Monopoly on Search, US Judge Rules

A US judge ruled that Google breached antitrust laws by spending billions of dollars to establish an illegal monopoly and become the world’s default search engine.

This marks the first significant victory for federal authorities challenging Big Tech's market dominance.

The ruling opens the door for a second trial to determine potential remedies, which could include a breakup of Google’s parent company, Alphabet. Such a move would significantly alter the online advertising landscape that Google has long dominated.

It also signals a green light for aggressive US antitrust enforcement against Big Tech, a sector that has faced criticism from across the political spectrum.

"The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," wrote US District Judge Amit Mehta in Washington, D.C.
Google controls approximately 90% of the online search market and 95% on smartphones.

The "remedy" phase could be protracted, followed by potential appeals to the US Court of Appeals for the District of Columbia Circuit and the US Supreme Court. The legal proceedings could extend into next year or even 2026.

Alphabet has announced plans to appeal Mehta’s ruling. "This decision acknowledges that Google provides the best search engine but concludes that we shouldn’t be allowed to make it easily accessible," Google said in a statement.

US Attorney General Merrick Garland described the ruling as "a historic win for the American people," adding that "no company -- no matter how large or influential -- is above the law."

White House Press Secretary Karine Jean-Pierre stated that the "pro-competition ruling is a victory for the American people," adding that "Americans deserve an internet that is free, fair, and open to competition."

Billions Paid

Mehta noted that Google had paid $26.3 billion in 2021 alone to ensure its search engine was the default on smartphones and browsers, thus maintaining its dominant market share.

"The default is extremely valuable real estate," Mehta wrote. "Even if a new entrant were well-positioned to bid for the default when an agreement expires, such a company could compete only if it were prepared to pay partners billions of dollars in revenue share and compensate them for any revenue shortfalls resulting from the change."

He added: “Google, of course, recognises that losing defaults would dramatically impact its bottom line. For instance, Google has projected that losing the Safari default would lead to a significant drop in queries and billions of dollars in lost revenue.”

This ruling is the first major decision in a series of cases addressing alleged monopolies within Big Tech. This case, filed during the Trump administration, was heard by a judge from September to November of the previous year.

"A forced divestiture of the search business would separate Alphabet from its largest source of revenue. Even losing its capacity to secure exclusive default agreements could be detrimental to Google," said eMarketer senior analyst Evelyn Mitchell-Wolf, who noted that a protracted legal process would delay any immediate effects for consumers.

In the past four years, federal antitrust regulators have also sued Meta Platforms, Amazon.com and Apple, alleging that these companies have unlawfully maintained monopolies.These cases all began under the administration of former President Donald Trump.

Senator Amy Klobuchar, a Democrat who chairs the Senate Judiciary Committee’s antitrust subcommittee, stated that the fact the case has spanned different administrations shows strong bipartisan support for antitrust enforcement.

"It's a huge victory for the American people that antitrust enforcement is alive and well when it comes to competition," she said. "Google is a rampant monopolist."

When the Google search case was filed in 2020, it was the first time in a generation that the US government had accused a major corporation of an illegal monopoly.

Microsoft settled with the Justice Department in 2004 over claims that it had forced its Internet Explorer web browser on Windows users.

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