In a landmark decision, a US judge has ruled that Google violated antitrust laws by spending billions of dollars to establish an illegal monopoly, making it the world’s default search engine. This ruling marks a significant victory for federal authorities challenging Big Tech’s market dominance.
The decision sets the stage for a second trial to determine potential remedies, which could include breaking up Google’s parent company, Alphabet. Such a move would dramatically alter the landscape of the online advertising industry, which Google has long dominated. It also signals a robust stance by US antitrust enforcers against Big Tech, a sector facing bipartisan criticism.
“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” wrote US District Judge Amit Mehta in Washington, DC. Google controls approximately 90% of the online search market and 95% on smartphones.
The “remedy” phase of the trial could be prolonged, potentially followed by appeals to higher courts, including the US Court of Appeals and the Supreme Court. The legal process might extend into next year or even 2026.
Following the ruling, Alphabet’s shares fell 4.5% amid a broader decline in tech stocks due to recession fears. In 2023, Google advertising constituted 77% of Alphabet’s total sales.
Google has announced plans to appeal the verdict. Kent Walker, Google’s global affairs president, highlighted that Judge Mehta acknowledged Google as the industry’s highest-quality search engine, especially on mobile devices. “Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal,” Walker said. “As this process continues, we will remain focused on making products that people find helpful and easy to use.”
US Attorney-General Merrick Garland hailed the ruling as “a historic win for the American people,” asserting that “no company – no matter how large or influential – is above the law.” White House press secretary Karine Jean-Pierre echoed this sentiment, calling the ruling a “victory for the American people” and advocating for an internet that is “free, fair, and open for competition.”
Judge Mehta noted that in 2021 alone, Google paid $26.3 billion to ensure its search engine remained the default on smartphones and browsers, maintaining its market dominance. “The default is extremely valuable real estate,” he wrote. He explained that even if a new entrant offered a superior product, they would need to pay billions to compete with Google’s established agreements.
The ruling is the first significant decision in a series of cases challenging alleged monopolies in Big Tech. This case, initiated by the Trump administration, was heard from September to November last year.
Evelyn Mitchell-Wolf, a senior analyst at Emarketer, stated that a forced divestiture of Google’s search business would sever Alphabet from its largest revenue source. However, she noted that the protracted legal process might delay any immediate effects for consumers.
Over the past four years, federal antitrust regulators have also sued Meta Platforms, Amazon.com, and Apple, accusing them of maintaining illegal monopolies. These cases, initiated under former President Donald Trump, reflect strong bipartisan support for antitrust enforcement.
Senator Amy Klobuchar, a Democrat and chair of the Senate Judiciary Committee’s antitrust subcommittee, emphasized the bipartisan nature of the case, stating, “It’s a huge victory for the American people that antitrust enforcement is alive and well when it comes to competition. Google is a rampant monopolist.”
Adam Kovacevich, CEO of the Chamber of Progress, noted that the biggest beneficiary of the ruling might be Microsoft. “Microsoft has underinvested in search for decades, but today’s ruling opens the door to a court mandate of default deals for Bing,” he said.
This case marks the first time in a generation that the US government has accused a major corporation of maintaining an illegal monopoly. The last significant case was against Microsoft, which settled with the Justice Department in 2004 over claims that it forced its Internet Explorer web browser on Windows users.