Google is a monopolist, says US court: Everything you need to know about the antitrust lawsuit in 5 points
Google this week lost a major antitrust lawsuit brought against it by the US Justice Department. The US court has declared that Google has a monopoly in the web search and advertising sector.
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In a significant legal battle, Google has suffered defeat in a major antitrust case brought against it by the US Justice Department. The court’s ruling, delivered by US District Judge Amit Mehta, found that Google illegally maintained its dominance in the web search and advertising markets through exclusive agreements with major device makers such as Apple and Samsung. The case, which highlights the tech giant’s controversial practices and its excessive control over the online search landscape, marks a pivotal moment in the ongoing investigation into Big Tech’s influence and raises important questions about the future of digital competition and regulation. Here’s a complete breakdown of Google’s antitrust lawsuit in 5 points.
-Google loses landmark antitrust case
In a major legal defeat, Google lost an antitrust case against the US Department of Justice (DOJ) this week. US District Judge Amit Mehta ruled that Google illegally maintained a monopoly in the web search and advertising markets. The decision highlights Google’s strategic use of exclusive deals with major device manufacturers such as Apple and Samsung, where the company paid billions to ensure that its search engine would be the default on their devices. “Google is a monopolist, and it has acted as a monopolist to maintain its monopoly,” Judge Mehta said in his ruling.
-Google’s billion dollar deals revealed
During the trial, it was revealed that Google spent more than $20 billion in 2021 alone to keep its search engine as the default option on platforms like Apple’s Safari. According to the court, these deals played a key role in creating Google’s monopoly, effectively squelching competition. The Justice Department emphasized that Google’s search engine handles about 90 percent of web searches – a figure that Google disputed, but which the court considered indicative of its excessive control over the market.
-Influence on the tech industry and the power of Big Tech
Judge Mehta’s ruling is being seen as a landmark assessment of how Big Tech has leveraged its roots on the internet to dominate various aspects of the digital economy, including shopping, information consumption, and online search. The ruling signals potential limits on the power of technology giants like Google, which have long used their dominance to shape the digital landscape. The ruling also criticized Google for raising the price of ads shown in search results, a practice that the DOJ argued was a clear sign of monopolistic behavior.
-Microsoft testimony highlights AI concerns
During the trial, Microsoft CEO Satya Nadella testified that Google’s dominance in the search market had led to what he called the “Google Web”. Nadella expressed concern that Google’s close relationship with Apple was “oligopolistic” and warned that if not reined in, Google could potentially dominate the race to develop artificial intelligence (AI). Google lawyers defended the company, arguing that their success was due to the quality and usability of their search engine, not any unfair practices.
-Indefinite penalty for Google
What specific penalties Google will face as a result of this decision has yet to be determined. Future hearings will determine whether a fine will be imposed or other measures, such as the breakup of Google, will be imposed. The government has called for “structural relief,” which could potentially mean eliminating parts of Google’s business to prevent future monopolistic behavior.
