On Monday, a U.S. judge ruled that Google violated antitrust laws by spending billions to create an illegal monopoly, becoming the default search engine worldwide. This landmark decision marks a significant victory for federal authorities challenging Big Tech’s market dominance.
The ruling opens the door for a second trial to explore potential remedies, including the possibility of breaking up Google’s parent company, Alphabet. Such a move could reshape the online advertising landscape, which Google has dominated for years. This decision also signals a more aggressive stance by U.S. antitrust enforcers against major tech companies, a sector facing scrutiny from all political sides.
U.S. District Judge Amit Mehta declared, “Google is a monopolist and has acted to maintain its monopoly.” Google controls about 90% of the online search market and an even higher percentage on smartphones.
The “remedy” phase of this case could be lengthy and might include appeals to higher courts, potentially extending the legal process into next year or beyond.
Following the ruling, Alphabet’s shares dropped 4.5% amid a broader decline in tech stocks due to recession fears. Google’s advertising accounted for 77% of Alphabet’s total sales in 2023.
Alphabet plans to appeal the decision. Google’s statement criticized the ruling, arguing that it undermines their ability to offer what they believe is the best search engine.
U.S. Attorney General Merrick Garland praised the ruling as “a historic win for the American people,” asserting that “no company – no matter how large or influential – is above the law.” White House Press Secretary Karine Jean-Pierre also supported the decision, calling it a “victory for the American people” and emphasizing the need for a fair and open internet.
Judge Mehta highlighted that Google spent $26.3 billion in 2021 alone to secure its position as the default search engine on smartphones and browsers, underscoring the value of this default status. He noted that losing these default agreements would significantly impact Google’s revenue.
This ruling is the first major decision in a series of antitrust cases targeting Big Tech, following similar suits against Meta Platforms, Amazon, and Apple. The case against Google, initiated by the Trump administration, is the first significant antitrust action against a major corporation in a generation. Previous high-profile cases include Microsoft’s 2004 settlement over Internet Explorer.
Senator Amy Klobuchar, who chairs the Senate Judiciary Committee’s antitrust subcommittee, praised the ruling as a strong bipartisan victory for antitrust enforcement, stating, “It’s a huge victory for the American people that antitrust enforcement is alive and well when it comes to competition.”
