Google has an illegal monopoly on the internet, decides American court

A US judge has ruled that Google spent billions of dollars to establish an illegal monopoly on its search engine, harming competition and stifling innovation. The landmark decision, announced on Monday (5), marks the first major victory for US authorities against the dominance of Big Tech, which has faced criticism from various political sectors.

“The court finds that Google is a monopolist and has acted to maintain its monopoly,” U.S. District Judge Amit Mehta wrote in his 277-page decision.

The ruling highlighted that Google holds 89.2 percent of the general search market, rising to 94.9 percent on mobile devices, underscoring its monopoly. U.S. Attorney General Merrick Garland called the ruling “a historic victory for the American people,” saying that “no company — no matter how large or influential — is above the law.”

The decision is a major setback for Google and its parent company, Alphabet, which had argued that its popularity was driven by consumer preference. Google currently processes about 8.5 billion queries a day worldwide, nearly double the number it did 12 years ago, according to a study by investment firm BOND.

Kent Walker, Google’s president of global affairs, announced that the company plans to appeal the decision, noting that Judge Mehta recognized Google as the best search engine in the industry.

The ruling sets the stage for a second trial that will determine possible remedies, including a possible breakup of Alphabet, which could significantly alter the online advertising landscape dominated by Google for years.

This is the first major verdict in a series of cases involving alleged monopolies at tech companies including Meta (owner of Facebook and Instagram), Amazon and Apple. The case against Google was brought during the administration of former President Donald Trump and ran from September to November last year.

Senator Amy Klobuchar, a Democrat and chairwoman of the Senate Judiciary Committee’s antitrust subcommittee, said the continuation of the case across administrations demonstrates strong bipartisan support for antitrust enforcement.

“It’s a huge victory for the American people that antitrust enforcement is alive and well when it comes to competition,” Klobuchar said. “Google is a rampant monopolist.”

The lawsuit portrayed Google as a tech giant that systematically eliminated competition to protect its search engine, which is the heart of a digital advertising machine that generated nearly $240 billion in revenue last year. Justice Department lawyers argued that Google’s monopoly allowed the company to charge advertisers artificially high prices while neglecting to invest in improvements to its search engine, harming users.

Mehta’s ruling highlighted the billions of dollars Google spends annually to keep its search engine as the default option on new phones and electronic devices. In 2021, Google spent more than $26 billion to secure those default arrangements, the judge said.

Experts note that the appeals process will likely take years, which is likely to delay any immediate impact on users and advertisers.

With information from News Agencies