Google loses significant antitrust lawsuit regarding its search dominance
A federal judge in the United States found on Monday that Google unjustly monopolized two markets: search and text advertising.
The landmark case launched by the government in 2020 claimed that Google maintained its dominance in the general search industry by establishing high entry obstacles and a feedback loop. The court determined that Google had violated Section 2 of the Sherman Act, which prohibits monopolies.
“After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” US District Judge Amit Mehta wrote in Monday’s opinion. "It has violated Section 2 of the Sherman Act."
The decision of the United States District Court for the District of Columbia is a startling rebuke to Google's oldest and most important company. The corporation has spent tens of billions of dollars on exclusive contracts to establish itself as the world's default search provider for smartphones and online browsers.
Now, Mehta claims, that powerful position has resulted in anticompetitive activity that must be halted.
Mehta cited Google's exclusive relationships with Apple and other key companies in the mobile ecosystem as examples of anticompetitive behavior. He also said that Google has charged exorbitant fees for search advertising, reflecting its dominant strength in search.
The court focused on Google's exclusive search arrangements on Android and Apple's iPhone and iPad devices, claiming that they contributed to the company's anticompetitive activity and dominance in the search market.
According to the court, general search services include Google's main search engine, which has typically competed with Yahoo. General search text advertising refers to text advertisements that appear alongside search results. The court ruled that Google had a monopoly in both of these sectors.
Google's lawyers defended the corporation, claiming that customers are drawn to its search engine because it is useful, and that Google is investing to improve it for consumers.
In 2020, the Department of Justice and a bipartisan group of attorneys general from 38 states and territories, led by Colorado and Nebraska, filed similar but distinct antitrust lawsuits against Google.
US Attorney General Merrick Garland, the country's top prosecutor, praised the decision as a "historic win for the American people".
“No company - no matter how large or influential - is above the law," Mr Garland said in a statement on Monday. "The Justice Department will continue to vigorously enforce our antitrust laws.”
Federal antitrust officials have filed more cases against Big Tech corporations, including Meta Platforms, which owns Facebook, Amazon.com, and Apple Inc., accusing them of maintaining illegal monopolies.
