Monday, December 23, 2024

Google built illegal monopoly to become world’s default search engine: US court in landmark antitrust case

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A United States judge ruled on Monday that Google violated antitrust laws by using billions of dollars to create an illegal monopoly and become the default search engine worldwide.

US district judge Amit Mehta ruled Monday, Aug. 5, 2024, that Google’s ubiquitous search engine has been illegally exploiting its dominance to squash competition and stifle innovation in a seismic decision that could shake up the internet and hobble one of the world’s best-known companies. (AP Photo/Richard Drew, File)

This landmark judgment is a major victory for the country’s federal authorities targeting Big Tech’s dominance. The ruling opens the door for a second trial to determine potential remedies, including a possible breakup of Google’s parent company, Alphabet.

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Google is a monopolist, rules US court

Judge Amit Mehta found that Google controls about 90 per cent of the online search market and 95 per cent of the smartphone search market.

“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” US district judge Amit Mehta, Washington, DC, wrote.

The next phase could involve lengthy legal proceedings and appeals, potentially extending into 2026.

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What Google said on the ruling?

Google plans to appeal, arguing that the decision unfairly targets its success.

“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Google said in a statement.

Alphabet’s shares fell 4.5 per cent following the ruling, which comes amid broader market declines. Google advertising was 77 per cent of Alphabet’s total sales in 2023.

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‘No company above the law’

US attorney general Merrick Garland hailed the ruling as a significant victory, saying that no company is above the law. The White House also welcomed the decision as a win for competition.

The case, initiated by the Donald Trump administration, marks the first major antitrust action against a major tech company in a generation. Similar lawsuits have been filed against Meta Platforms, Amazon, and Apple.

(Inputs from Reuters)

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