August 5th, 2024

Google's online search monopoly is illegal, US judge rules

A US judge ruled that Google illegally maintains a monopoly in online search, potentially leading to penalties or a breakup. Google plans to appeal, citing service quality over anti-competitive practices.

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Google's online search monopoly is illegal, US judge rules

A US judge has ruled that Google has acted illegally to maintain its monopoly in the online search and advertising markets, marking a significant setback for its parent company, Alphabet. The ruling follows a lawsuit filed by the US Department of Justice in 2020, which accused Google of controlling approximately 90% of the online search market. The judge, Amit Mehta, stated that Google has paid billions to ensure it remains the default search engine on various platforms, which has hindered competition. The government is seeking "structural relief," potentially leading to a breakup of the company, although specific penalties have yet to be determined. Google plans to appeal the decision, arguing that its popularity stems from the quality of its services rather than anti-competitive practices. The ruling is part of a broader effort by US antitrust authorities to challenge the dominance of major tech companies, including Meta, Amazon, and Apple. The case highlights the significant financial investments Google makes to secure its market position, with annual payments exceeding $10 billion to companies like Apple and Samsung for default search agreements. The outcome of this case could reshape the competitive landscape of the tech industry, as it underscores the importance of default settings in consumer choice.

- A US judge ruled Google maintains an illegal monopoly in online search.

- The ruling could lead to significant penalties or even a breakup of the company.

- Google plans to appeal, asserting its services are superior due to quality, not anti-competitive practices.

- The case is part of a larger trend of antitrust actions against major tech firms.

- Google spends over $10 billion annually to secure its default search engine status.

Link Icon 3 comments
By @samspenc - 6 months
By @stubish - 6 months
This seems of particular importance to Mozilla and Firefox. The payments that support the company have been declared illegal.