A US federal court has ruled that Google illegally maintained a monopoly in online search, marking a significant victory for antitrust regulators in their efforts to curb the power of Big Tech firms.
Judge Amit Mehta of the US District Court for the District of Columbia found that Google violated Section 2 of the Sherman Act, a key US antitrust law. In his ruling, Judge Mehta stated: "After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly."
The case, brought by the US Department of Justice and attorneys general from over three dozen states and territories, centred on Google's practices in the search engine market. Prosecutors argued that Google spent billions of dollars annually on agreements with device manufacturers and browser makers to ensure its search engine was the default option on smartphones and computers.
According to the ruling, Google paid $26.3 billion in 2021 alone to secure default positions on various platforms. Judge Mehta noted that these agreements gave Google an anti competitive advantage, making it financially unfeasible for rivals to compete for default status.
The court found that Google controls approximately 90 per cent of the online search market and 95 per cent on smartphones. Judge Mehta described Google's monopoly as "remarkably durable," having increased from about 80 per cent in 2009 to 90 per cent by 2020.
While the ruling is a significant setback for Google, the company plans to appeal. Kent Walker, Google's president of global affairs, said in a statement: "This decision recognises that Google offers the best search engine, but concludes that we shouldn't be allowed to make it easily available."
The verdict does not yet specify what penalties or remedies Google will face. A second phase of the trial will determine potential fixes, which could range from changes in business practices to a potential breakup of Google's parent company, Alphabet.
US attorney general Merrick Garland called the ruling "a historic win for the American people," adding that "no company - no matter how large or influential - is above the law."
The decision is expected to have far-reaching implications for the tech industry and could pave the way for more aggressive antitrust enforcement against other major technology firms. Google already faces another antitrust trial later this year, focusing on its advertising technology practices.
This ruling comes as part of a broader push by US and European regulators to scrutinise the market power of big tech companies. Similar cases are pending against other tech giants, including Meta, Amazon, and Apple.
The trial, which began in September 2023, involved testimony from high-profile tech executives, including Google chief executive officer Sundar Pichai and Microsoft chief executive officer Satya Nadella.
As the legal process continues, the tech industry and regulators will be closely watching the remedies phase and potential appeals, which could reshape the landscape of online search and digital advertising for years to come.
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