A judge in the United States has ruled that Google has spent billions of dollars to create an illegal monopoly for its search engine, which has suppressed competitive pressure and stifled innovation. The landmark decision, made on Monday, marks the first significant victory for American authorities in their fight against the dominance of Big Tech, which has faced scrutiny across the political spectrum.
U.S. District Judge Amit Mehta wrote in his 277-page ruling: “The Court reaches the following conclusion: Google is a monopolist, and it has acted as such to maintain its monopoly.” The ruling highlights Google’s dominance in the search market as evidence of this monopoly, with Google holding a market share of 89.2% for general search services, which rises to 94.9% on mobile devices.
U.S. Attorney General Merrick Garland called the decision “a historic victory for the American people,” adding that “no company – no matter how large or influential – is above the law.” This ruling represents a significant setback for Google and its parent company, Alphabet, which has claimed that its popularity is due to consumers’ overwhelming desire to use a search engine that has become synonymous with online searches.
According to a recent study by the investment firm BOND, Google’s search engine handles approximately 8.5 billion queries each day globally, nearly double its daily volume from 12 years ago. Google’s President of Global Affairs, Kent Walker, stated that the company plans to appeal the decision, noting that Mehta characterized Google as the industry’s best search engine. “Given this, and the fact that people are increasingly seeking information in more varied ways, we plan to appeal,” said Walker.
The ruling paves the way for another trial to determine potential remedies, possibly including a breakup of Alphabet, which would fundamentally change the online advertising landscape that Google has dominated for many years. This decision is the first major ruling in a series of cases targeting alleged monopolies in Big Tech, including Metaverse, which owns Facebook and Instagram, Amazon, and Apple. The Google case, initiated by the administration under former President Donald Trump, saw a judge from September to November last year.
Senator Amy Klobuchar, a Democrat who chairs the Senate Judiciary Committee, stated that the continuation of the case through different administrations demonstrated strong bipartisan support for antitrust enforcement. “This is a huge victory for the American people, proving that antitrust enforcement is alive and well when it comes to competition,” she said. “Google is a driven monopolist.”
The case portrayed Google as a technological bully systematically stifling competition to protect a search engine that has become central to a digital advertising economy that generated nearly $240 billion in revenue last year. Justice Department lawyers argued that Google’s monopoly allowed it to charge advertisers artificially high prices while enjoying the benefits of not having to invest more time and money in improving the quality of its search engine—a lax approach that harmed users.
Mehta’s ruling highlighted the billions of dollars Google spends each year to have its search engine set as the default option on new mobile phones and electronic devices. In 2021 alone, Google spent more than $26 billion to secure these default agreements, the judge noted. However, experts believe that the appeals process could take years, which is likely to delay any immediate impact on users and advertisers.