Google a ‘monopolist’, says landmark US judgement

Google was described as a “monopolist” in a landmark judgement by a US court that represents the first anti-monopoly decision against a tech company in over two decades

US District Judge Amit Mehta found that Google violated Section 2 of the Sherman Act of 1890, which outlaws monopolies, in the online search and advertising markets.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” wrote Judge Mehta in the decision.

The significant legal defeat comes in an antitrust case filed in 2000 by the United States Department of Justice and several state attorneys general, where it argued that Google maintained its dominance through exclusionary agreements, particularly by securing default status on browsers like Apple’s Safari and various Android devices.

These deals, worth tens of billions of dollar annually, effectively stifled competition by making it difficult for other search engines to gain a foothold

Judge Mehta’s 277-page ruling highlighted how Google’s contracts with companies like Apple and Samsung ensured its search engine remained the default choice for most users, contributing to its near-total control over the search market.

This decision underscores Google’s extensive market power, which it has used to inhibit competition and innovation, ultimately harming consumers by limiting choices and keeping prices for advertisers high, said Attorney General Merrick Garland, who hailed the decision as a historic victory, while emphasising that no company is above the law.

The ruling is expected to lead to a second phase where remedies will be determined, potentially including structural changes to Google’s business practices to foster a more competitive environment.

Google said it plans to appeal the decision, maintaining that its search engine’s dominance is due to its quality and consumer preference rather than anti-competitive practices.