In a landmark ruling on August 5, 2024, U.S. District Judge Amit P. Mehta declared Google a monopolist and found the tech giant guilty of violating antitrust laws in its online search and advertising practices. The decision, stemming from a 2020 lawsuit filed by the U.S. Department of Justice, marks a significant victory for American regulators in their efforts to curb the power of Big Tech.Judge Mehta’s 277-page ruling focused on Google’s practice of paying billions of dollars annually to companies like Apple and Samsung to make Google the default search engine on their devices. In 2021 alone, these payments amounted to approximately $26.3 billion. The court found that Google commands approximately 90% of online searches and 95% of the smartphone search market.The ruling could have far-reaching implications for the tech industry. It may threaten a $25 billion fee deal between Google and Apple this year, which represents nearly 20% of Apple’s operating profit. Additionally, the decision could pave the way for new competitors, particularly AI-powered search engines. As noted by some analysts, ‘If this decision is confirmed, which is uncertain, Apple could turn to artificial intelligence-based search technology’.Google plans to appeal the decision, with Kent Walker, Google’s president of global affairs, stating that the ruling ‘recognizes Google as the best search engine but concludes that it should not be allowed to make it easily available’. However, if upheld, the ruling could lead to significant changes in how search engines are distributed on devices and how other companies interact with Google.This case is part of a broader trend of antitrust actions against tech giants. Similar lawsuits are pending against companies like Meta, Amazon, and Apple. As U.S. Attorney General Merrick Garland emphasized, ‘No company, no matter how big or how influential, is above the law’.
Key points
- U.
- Google pays billions annually to be the default search engine on devices, controlling 90% of online searches.
- The ruling could impact Google’s $25 billion deal with Apple and open the market to AI-powered competitors.
- Google plans to appeal, but the decision could lead to significant changes in the tech industry.
S.
federal judge ruled Google violated antitrust laws in online search and advertising.
Contradictions👾Google argues that users choose its search engine for quality, while the court found that its dominance is due to anticompetitive practices.
