Google Loses Landmark US Antitrust Case

Google has found itself on the losing end of a landmark antitrust case after a judge ruled on Monday that the company illegally ran a monopoly in search and text advertising.

The 2020 case -- which combined another case filed by the Department of Justice and attorneys general from 38 states -- contended that Google held its dominance in the search market by unfairly blocking competitors in violation of Section 2 of the Sherman Act, which outlaws monopolies.

Court documents showed that Google worked hard to maintain its dominance in Android and Apple mobile devices, paying $20 billion in 2022 to be Apple’s preferred search engine.

In his ruling, US District Court judge Amit Mehta wrote, “Google is a monopolist, and it has acted as one to maintain its monopoly … Sure, users can access Google’s rivals by switching the default search access point or by downloading a rival search app or browser. But the market reality is that users rarely do so.”

Google’s Kent Walker, president of global affairs, said the company is working on an appeal, pointing to the court’s praise of the company’s product.

“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Walker wrote in a statement. “As this process continues, we will remain focused on making products that people find helpful and easy to use.”

Related:Could the DOJ’s Antitrust Trial vs Google Drive More Innovation?

The decision came on the same day the top seven technology companies, Google parent Alphabet included, suffered a historic $900 billion-plus stock drop after a brutal day of trading. Alphabet shares were down more than 4% on Monday.

Mehta also wrote that Google’s dominance was won by design: “Google has not achieved market dominance by happenstance. It has hired thousands of highly skilled engineers, innovated consistently, and made shrewd business decisions.”

A second trial is expected to determine potential fixes -- including the possibility of breaking up Alphabet -- which would shake up the tech landscape Google has sat atop for years. The “remedy” phase of the case could be lengthy, potentially involving appeals to the US Court of Appeals, the District of Columbia Circuit, and the US Supreme Court.

US Attorney General Merrick Garland in a statement said the ruling was “a historic win for the American people,” and that “no company -- no matter how large or influential -- is above the law.”

Last year, Google changed its data practices after a German antitrust probe. The European Union has focused on big tech as it continues to create globally influential regulations under the Digital Markets Act and Digital Services Act.

Related:Google Caves to EU Antitrust Pressure, Changes Data Practices