Google created illegal monopoly using billions of dollars over internet search to become the default search engine around the world, a US judge has ruled.
The ruling says Google violated antitrust laws and shelled out about $26.3 billion in 2021 alone to retain its monopoly over the search engine market. The development marks a significant turning point in the regulation of Big Tech platforms by federal authorities, which have ranged against leading tech conglomerates to rein in their powers.
“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 said in a 227-page ruling, which adds that Google controls 95 per cent of web browsing and 95 per cent of online search on smartphones.
The ruling could have a seismic impact on Google’s owner Alphabet’s gargantuan advertising acumen, which has been the company’s major source of revenue. The court’s findings allow the regulators to proceed with a second trial, which will entail possible remedies, including a split of Alphabet itself. The breakup could change the face of online advertising and disintegrate Google’s decades-long dominance in the industry.
“Sure, users can access Google’s rivals by switching the default search access point or by downloading a rival search app or browser. But the market reality is that users rarely do so,” the judge wrote. “The default is extremely valuable real estate. Because many users simply stick to searching with the default, Google receives billions of queries every day through those access points.”
Google, on the other hand, has opposed the ruling and is planning to appeal against it. “This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”
The case was filed in 2020.
