What happened:
This week, Google faced a major legal setback as a U.S. federal judge ruled that the company had illegally built a monopoly in the online search and advertising industry. Judge Amit Mehta’s ruling found that Google violated antitrust laws by paying billions to companies like Apple and Samsung to ensure its search engine was the default on their devices. In 2021 alone, Google spent over $26 billion to maintain its market dominance.
The case portrayed Google as a tech giant that crushed competition to protect its dominance in the search market—a market that fuels its $240 billion digital advertising empire. With a near-total share of the search market, especially on mobile devices where it controls 94.9%, the court found that Google used its monopoly to stifle innovation and keep competitors at bay.
U.S. Attorney General Merrick Garland called the ruling a “historic win for the American people,” reinforcing that no company is above the law. This decision marks a significant milestone in the U.S. government’s efforts to rein in Big Tech.
Why it matters:
The ruling could reshape the digital landscape. The next trial will determine potential remedies, which could range from changes to Google’s business practices to a complete breakup of Alphabet, Google’s parent company—a move that could dramatically alter the online advertising world.
But Google isn’t giving up. The company plans to appeal, arguing that its market dominance is due to the quality of its product, not anticompetitive behavior. Google’s president of global affairs, Kent Walker, noted that the ruling even acknowledged Google as the best search engine—a point they’ll leverage in their appeal.
What happened: This week, Google faced a major legal setback as a U.S. federal judge ruled that the company had illegally built a monopoly in the online search and advertising industry. Judge Amit Mehta’s ruling found that Google violated antitrust laws by paying billions to companies like Apple and Samsung to ensure its search engine […]