"Google is a monopolist," rules US court
Google has a monopoly in internet search – and has used illegal means to defend that monopoly against competitors. A US court made the determination in a ruling announced on Monday. Observers call the decision groundbreaking – but there will not be any consequences as yet.
The ruling comes in a case first brought in 2020 by the US Justice Department and several states. Attorney General Merrick Garland on Monday called the decision “an historic win.” Google has already announced its plans to appeal the ruling.
Billions paid for default status
At the center of the trial were billion-dollar payments to other companies that Google used for years to secure its place as the default search engine in web browsers like Apple Safari and Mozilla Firefox.
According to a report in the New York Times, in 2021 alone, Google paid Apple roughly $18 billion to keep Google as the default search engine on the iPhone.
Users have the option to change this setting – in Firefox, for example, the option is located under “Preferences → Search → Default Search Engine.” But, as the ruling states, “many users simply stick to searching with the default.”
Search engine monopoly
In court, Google argued that it provided users with the better choice. “Users choose to search on Google because they find it useful,” the company’s lawyers said, according to the Times.
The US government on the other hand accused Google of leveraging its billion-dollar payments to deny competitors the opportunity to compete with its search engine. Google collected more data about consumers than its competitors could, and with that data it was able to make its search engine better and more dominant, the government argued.
Judge Amit P. Mehta “sided with the government, saying Google had a monopoly over general online search services,” the Times reports. “The company’s agreements to be the automatic search engine on devices and web browsers hurt competition, making it harder for rivals to challenge Google’s dominance.”
The Justice Department also accused Google of having a monopoly over the ads that are shown inside search results.
On this point too the judge sided with the government. As the ruling states, “Google has exercised its monopoly power by charging supracompetitive prices for general search text ads.” The inflated revenue these ads brought in allowed Google to continue paying other companies to ensure its search engine had default placement.
Additional ruling to decide consequences
It is not yet clear what consequences the ruling will have. The judge will now decide what further steps to take. It is not known, furthermore, what sanctions the government will seek. Google meanwhile has already announced that it will appeal the decision. Observers expect the appeal to take several years.
Nevertheless, experts consider the ruling important. The New York Times called it a “landmark decision” and a “major blow to Google.” According to the paper, the ruling “could have major ramifications for Google’s success.” It will also likely influence antitrust cases that the Justice Department is currently pursuing against other tech companies like Meta and Apple.
Rebecca Haw Allensworth, a professor at Vanderbilt University who studies antitrust law, told the Times: “This is the most important antitrust case of the century, and it’s the first of a big slate of cases to come down against Big Tech.” The decision, she said, is “a huge turning point.”
In the European Union, the Digital Markets Act (DMA) that went into effect last year mandates that users be asked to select a default search engine from a list of suggested options.
The European Commission is pursuing its own antitrust case against Google, arguing that the company distorts competition in the advertising technology industry.
And back in the US the Justice Department filed a separate suit against Google last year over its online advertising practices. The case is set to go to trial in September. (dpa / js)