A U.S. judge informed that Google breached antitrust law by spending billions to establish an illegal monopoly as the world’s default search engine.
This ruling marks a significant victory for federal authorities challenging Big Tech’s dominance and sets the stage for a potential breakup of Google’s parent company, Alphabet, Reuters news report said.
Fuelled by demand for online advertisement among enterprises and consumers, Google generated $305.63 billion in revenue in 2023, $279.8 billion in 2022, $256.74 billion in 2021, and $181.69 billion in 2020. This shows that Google has enhanced its revenue over the last few years due to its control over online search engine business.
The ruling by U.S. District Judge Amit Mehta in Washington, D.C., highlights Google’s extensive control, with the company commanding about 90 percent of the online search market and 95 percent on smartphones. The “remedy” phase will now follow, potentially leading to prolonged legal battles and appeals that could extend into 2026.
A report said online search market size is expected to reach $368.93 billion in 2031 as compared with $185.39 billion in 2022.
The ruling revealed that Google had spent $26.3 billion in 2021 alone, representing 10 percent of its sales, to ensure its search engine remained the default on smartphones and browsers, securing its market dominance. Judge Amit Mehta emphasized the immense value of being the default search engine, noting that losing such status would severely impact Google’s revenue.
Google’s advertising revenue, which accounted for 77 percent of Alphabet’s total sales in 2023, could be significantly impacted by any court-ordered changes. Google Android dominates mobile OS market with almost 70 percent share.
Key statements from Judge Mehta’s 277-page ruling include:
“Google is a monopolist, and it has acted as one to maintain its monopoly.”
“The default is extremely valuable real estate. Because many users simply stick to searching with the default, Google receives billions of queries every day through those access points.”
“Google has not achieved market dominance by happenstance. It has hired thousands of highly skilled engineers, innovated consistently, and made shrewd business decisions. The result is the industry’s highest quality search engine, which has earned Google the trust of hundreds of millions of daily users.”
Alphabet plans to appeal
Alphabet has plans to appeal the ruling, stating that while the decision acknowledges Google’s superior search engine, it unfairly restricts its availability. U.S. Attorney General Merrick Garland praised the decision as a “historic win for the American people,” emphasizing that no company is above the law.
This case, initiated by the Donald Trump administration, is the first major ruling among several ongoing cases against alleged Big Tech monopolies. Federal regulators have also filed suits against Meta Platforms, Amazon, and Apple, alleging illegal monopoly practices.
Senator Amy Klobuchar, who chairs the Senate Judiciary Committee’s antitrust subcommittee, hailed the ruling as a significant bipartisan victory for antitrust enforcement. She emphasized that the decision reflects strong support for maintaining competition in the tech industry.
The ruling outlined Google’s strategic efforts to maintain its dominance, including securing exclusive agreements with developers, carriers, and equipment makers. Judge Mehta noted that while users can technically switch to rival search engines, the reality is that most do not, cementing Google’s monopoly status.
As the case progresses, the outcome could reshape the online advertising landscape and set a precedent for future antitrust actions against major tech companies.
Baburajan Kizhakedath
