A US federal judge has ruled that Google violated monopoly laws by using its market dominance in online search to stifle competition, a landmark decision that could reshape the businesses of America’s biggest tech companies.
Google, which handled about 90 percent of global Internet searches, exploited its leading position to exclude rivals, the court ruled. This ruling marks the first significant antitrust victory for the U.S. Department of Justice in more than two decades.
“Google is a monopolist, and has acted as such to maintain its monopoly,” Judge Amit P. Mehta wrote in a lengthy 276-page ruling. This case is the first ruling in a series of lawsuits against alleged technology monopolies.
In 2021, Google spent $26.3 billion to make its search engine the default on smartphones and web browsers, maintaining its dominant market share, the judge noted.
Mehta’s decision against Alphabet-owned Google sets the stage for a second trial to determine remedies, which could include a ban on payments to smartphone makers for setting Google as the default search engine.
During the trial, which began in September, the Justice Department accused Google of monopolistic practices and abusing its power for profit.
Google CEO Sundar Pichai acknowledged in his testimony the critical importance of setting Google as the default search engine across devices to maintain user loyalty, saying, “We absolutely see value.”
Google’s legal team refuted claims of anti-competitive behavior, arguing that the default status had limited impact and dissatisfied users could easily switch.
This case, initiated by the Trump administration, is one of five cases targeting the market dominance of technology giants. During Trump’s term in office, a second antitrust lawsuit was also filed against Facebook’s parent company Meta. Under President Biden, additional cases have been filed against Google, Apple and Amazon.
US Attorney General Merrick Garland applauded the ruling, saying: “This victory against Google is a historic victory for the American people. No company – no matter how large or influential – is above the law. The Department of Justice will continue to vigorously enforce our antitrust laws.”
Google plans to appeal the ruling. Kent Walker, Alphabet’s President of Global Affairs, commented: “This decision recognizes that Google offers the best search engine, but concludes that we should not make it easily available. We appreciate the Court’s finding that Google is ‘the industry’s highest-quality search engine, which has earned Google the trust of hundreds of millions of daily users’… Given this, and as people increasingly search in more and more ways seeking information, we plan to appeal. As this process continues, we will continue to focus on creating products that people find useful and easy to use.”