A federal court concluded on Monday that Google’s monopoly in the internet search and advertising industry was illegal. The court cited Google’s payments to companies to win prime placements on smartphones and web browsers as violating US antitrust rules.
Judge Amit Mehta decided that Google’s $26 billion in payments to firms like Apple in 2021 to ensure its search engine was the default on browsers and mobile devices effectively prevented competitors from entering the market.
Mehta’s judgment is a landmark victory for the Department of Justice. It is the first antitrust trial involving a US technology business in almost two decades.
In his decision, Mehta concluded that “Google is a monopolist, and it has acted as one to maintain its monopoly,” citing breaches of Section 2 of the Sherman Act.
Google stated that it would appeal the case, adding that the judge’s decision confirmed its claim to have the most significant search engine.
Google’s position as the default search engine for Apple’s Safari browser, a reputedly $10 billion relationship that began with the browser’s introduction in 2003, has attracted more users to its search service, significantly increasing its ad income. According to Statista, Google’s search operations produced over $300 billion in income last year.
The trial began last autumn and lasted ten weeks. It included evidence from top Silicon Valley heavyweights such as Google parent firm Alphabet CEO Sundar Pichai, Microsoft CEO Satya Nadella, and Apple executive Eddy Cue.
Throughout the proceedings, Google has maintained its stance against any charges of anticompetitive behavior, claiming that its vast market share is due to a superior product enjoyed by customers.
Google will face another antitrust trial on September 9, focusing on its ad tech operations. The DOJ claims that Google improperly maintained its dominance in the digital advertising business, purportedly increasing income while raising advertiser expenses.
Source- Adweek
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