After four years in federal court, the US Department of Justice has won a historic antitrust case against tech giant Google that could set a new precedent for Big Tech lawsuits going forward.
Legal Violations from Google
A federal judge has ruled that Google’s parent company, Alphabet Inc., violated federal anti-trust laws through online searches and advertising, in a case brought to the fore by the US Department of Justice.
Maintaining Monopoly
The Justice Department has maintained that Google paid billions to ensure that its search engine remained dominant on smartphones and browsers, exercising monopoly control over 90% of browser searches and 95% of smartphone searches.
Judge Amit Mehta
US District Judge Amit Mehta ruled in the department’s favor in the US District Court for the District of Columbia on Monday.
“Google is a Monopolist”
“After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta wrote in Monday’s court filing.
Violation of the Sherman Act
Mehta confirmed that the tech giant violated Section 2 of the Sherman Act, which dictates that any attempt to monopolize any sector of US trade or commerce is deemed a felony by the US government.
Exclusive Deals
In particular, Mehta pointed to exclusive deals with major mobile companies like Apple, allowing it to become the default search browser for their devices.
$26 Billion on Search Engine Contracts
The case revealed that Google had paid $26 billion in 2021 alone to smartphone companies for this purpose, with $18 billion going exclusively to Apple.
World’s Largest Smartphone Provider
Apple is currently the largest smartphone provider in the world, according to the Financial Times, overtaking Samsung last year and representing a major market share for Google.
Search Text Advertising
Google’s dominance as a smartphone and browser search engine also allowed it to generate an enormous online advertising business, particularly through general search text advertising, which are text ad features in search results.
A Massive Blow for Google
It’s a stunning blow to one of the oldest, and the most trusted, search engines that the internet has known. Google has spent decades and tens of billions of dollars securing enviable contracts that gave it the scale and the power to nudge out competitors like Bing and DuckDuckGo, according to the DOJ.
Dating Back to 2020
The historic case was first filed by the US government in 2020, during the Trump administration. Initially, separate lawsuits were brought against the tech giant by 38 attorney generals before being consolidated into one case under the DOJ.
Big Boost for Antitrust
The ruling is a major victory for US antitrust regulators, who have recently launched a number of high-profile lawsuits against Big Tech companies. It is the first DOJ success against a major monopoly in two decades.
“Historic Win for the American People”
It has also been branded a “historic win for the American people” by Attorney General Merrick Garland.
“No Company is Above the Law”
“No company — no matter how large or influential — is above the law,” he wrote in a public statement on the case. “The Justice Department will continue to vigorously enforce our antitrust laws.”
White House Weighs in
The Biden administration has also weighed in on the court ruling. “As President Biden and Vice President Harris have long said, Americans deserve an internet that is free, fair, and open for competition,” said White House Press Secretary Karine Jean-Pierre in a public statement on Monday.
A New Precedent?
Mehta’s ruling could set a new precedent for federal lawsuits against Big Tech companies. The DOJ and Federal Trade Commission are currently pursuing cases against Apple and Amazon.
Second Trial Coming
Now, Mehta’s ruling sets the stage for a second trial, which will dictate how Alphabet Inc and Google will be required to remedy its market monopoly, allowing more space for other search engines to compete.
Consequences for Google
It could be months or years before any consequences are instated, but this second ruling may curtail the expensive contracts Google once used with other companies, or potentially result in fines.
It Will Appeal
However, Google is already planning to appeal the ruling. Google’s president of global affairs, Kent Walker, issued a statement confirming the appeal and pointing to perceived inconsistencies in the ruling.
Remaining Focused on Customers
“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Walker wrote. “As this process continues, we will remain focused on making products that people find helpful and easy to use.”
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