The “victory” over the tech giant came after at least two decades of efforts to limit the power of Big Tech companies
A United States federal court ruled that Google illegally abused its market power to eliminate competition in Internet search.
The “victory” against the tech giant came after at least two decades of efforts to limit the power of Big Tech companies to control and dominate the vast markets they have created.
“Google is a monopoly and acted to maintain its monopoly,” Judge Amit Metta of the U.S. District Court for the District of Columbia said in a ruling Monday.
Metta ruled that the Justice Department was right. regarding allegations that Google violated antitrust law by entering into restrictive agreements with Apple and other phone makers that required them to install Google as the default search engine on smartphones.
It also alleged other practices by Alphabet that prevented its rivals from competing on a level playing field.
“This victory against Google is a historic victory for the American people,” said Attorney General Merrick Garland.< /p>
“No corporation – no matter how powerful – is above the law. The Department of Justice will continue to enforce our antitrust laws,” he added.
Google, for its part, argued in court that its dominance of the search market is evidence of its superior search engine over rivals such as Microsoft's Bing, and not the result of business deals.
The Justice Department of US has invoked federal antitrust law against a major tech company for more than 20 years, then Microsoft.
Big Tech under strict scrutiny
Google's case is being watched closely by antitrust authorities, as it is the first in a string of others brought by federal prosecutors against high-tech giants.
Antitrust authorities argue that Big Tech has become too powerful, in to an extent that no longer serves the public interest. Lawsuits have also been filed against Amazon, Meta and Apple.
The judge said Google maintained its revenue growth and high operating profits by repeatedly raising search advertising prices, and that there was “no evidence” that market competition was able to limit the ability of Google to keep raising its prices.
“The only apparent limitation to Google's pricing policy is potential advertiser backlash and bad publicity,” the judge said. “Google, however, has managed to avoid these pitfalls by gradually increasing its prices … many advertisers don't even realize that Google is responsible for price changes,” he added.
The impact of the decision
The impact of the decision on Google and the wider online ecosystem is still unclear. The judge will rule on “remedial measures” to be imposed in the coming months. A possible measure would be for the court to deny Google the ability to continue paying to secure its search engine's primary placement on Apple's iPhones and other devices and web browsers.
However, this could work to Google's advantage, as its search engine can remain the default without the company having to pay billions of dollars, as it currently does, to secure placement. Such a decision could also end up depriving Apple of an important source of revenue.
Other suggestions from antitrust experts include requiring browsers and phone makers to directly ask consumers which search engine they'd like to use when they first set up their device. This system has been tested in the past in Europe, where Google still largely maintains its dominance.
Others have suggested “breaking up” individual Google businesses. The company is not content with controlling the world's main search engine, but also maintains activities at different levels of this complex industry, such as connecting advertisers and users online.
In any case, “the remedy must match the court's impressive verdict,” experts said on Monday. The decision was welcomed by antitrust advocates, as for a long time many believed that Google, perhaps the most powerful company in human history, was on the defensive.
Case timeline< /h3>
The case against Google began in 2020 under Trump. Prosecutors from the Biden administration's Justice Department took her to trial in September 2023.
The nine-week trial featured industry executives such as Microsoft CEO Satya Nadella, as well as executives in a Washington court. of Apple to testify about Google's restrictive covenants and explain why it was difficult for other companies to enter the market.
Prosecutors argued that Google acted with its practices at the expense of healthy search engine competition by requiring device makers who wanted to use its popular Android operating system to set Google search as the default. Google also pays Apple about $19 billion a year to keep Google search as the default search engine on its iPhones and other devices.
Another Justice Department antitrust lawsuit against Google , focused on its advertising technology, is expected to be tried in federal court in Virginia.
Google is also subject to antitrust scrutiny outside the United States, such as in the European Union, where regulators in March announced investigations into under the new digital markets law and the new antitrust law affecting online giants.
With information from Reuters
