US District Judge Amit P. Mehta has ruled that Google illegally monopolized the search engine market. According to a comprehensive 286-page decision, the company paid $26 billion to smartphone and web browser owners to ensure its search engine was set as the default option, effectively blocking competitors from gaining a significant presence in the market.
Despite this ruling, Judge Mehta determined that Google does not hold a monopoly in the search engine advertising market. He noted that companies like Amazon and Walmart have started offering their own search-related advertising on their websites. However, Google does maintain a monopoly over search text ads, which are the advertisements that appear at the top of search result pages.
This ruling marks the first time in over two decades that a US District Court has found a technology company guilty of such antitrust violations. The judge has yet to outline the specific changes that will be required, but there is speculation that Google may be required to offer US Android users the option to select their preferred search engine during the initial setup of a new device.
Potential remedies could also include the separation of Google’s search business from other Alphabet products like Android or Chrome. If such a breakup were mandated, it would represent the most significant forced dismantling of a US company since the breakup of AT&T in 1984, which resulted in the creation of smaller, independent regional phone companies.
The detailed report disclosed that Google systematically paid companies like Samsung and Apple to use its search engine, a strategy that significantly boosted Google’s market value and generated over $300 billion in revenue, primarily from search-related advertisements. This practice also influenced Google’s market share, which rose from 80% in 2009 to 90% in 2020.
In response to the ruling, Google announced its intention to appeal, asserting that its market dominance is due to the preference of users for its “superior products.”
