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The court ruling reflects the US government’s increasing scrutiny of Big Tech companies’ market power
US federal judge Amit P. Mehta has ruled that Google, owned by Alphabet, has maintained an illegal monopoly over online searches and search-related advertising.
Back in 2020, the US Department of Justice (DOJ) sued Google, accusing it of maintaining illegal monopolies through anticompetitive contracts, exclusionary practices, and the preferential treatment of its own services. It highlighted Google’s agreements with other companies to make its search engine the default on devices and browsers, which the DOJ argued harmed competition.
District Judge Amit Mehta noted that Google’s control of about 90% of the online search market was maintained through these payments. This meant the giant could push out rivals to increase its own advertising revenues.
In 2021, for example, the company paid out $26.3 billion to ensure that its search engine was the default on various smartphones and devices. Mehta described the default search engine position as “extremely valuable real estate”.
Separately, the DOJ also sued Google last year, accusing the company of monopolising the adtech market, which focused on the different aspects of Google’s business related to online advertising technologies.
“Americans deserve an internet that is free, fair, and open for competition,” said the White House press secretary, Karine Jean-Pierre.
Google disagrees with the ruling, saying it is being punished for outcompeting its opponents.
“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” said Kent Walker, Google’s president of global affairs.
Alphabet is expected to appeal the decision, indicating that the legal process will continue for some time. If the ruling is upheld, the court may impose remedies to address the antitrust violations. These could range from financial penalties to structural changes within Google’s business operations.
Regardless of whether a penalty is imposed, the ruling represents the increased scrutiny that governments are pushing on tech giants.
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