A federal judge has determined that Google illegally abused its monopoly over the search industry. The decision follows a 10-week trial stemming from a 2020 lawsuit filed by the Department of Justice (DOJ) and several states. Judge Amit Mehta of the US District Court for the District of Columbia ruled that Google’s actions violated Section 2 of the Sherman Act, which outlaws monopolistic practices.

Illegal Practices and Market Dominance:

Judge Mehta’s ruling highlights how Google maintained its dominance by paying billions to companies like Apple, Samsung, and Mozilla to ensure its search engine remained the default on their devices and browsers. This practice, the judge noted, effectively blocked competitors from gaining the necessary scale to challenge Google’s supremacy. With nearly 90% of all web searches conducted through Google, the company leveraged its position to both increase revenue and collect vast amounts of user data.

Impact on Advertising and Market Fairness:

The ruling also addressed Google’s influence over the search advertising market. The DOJ claimed that Google’s dominance allowed it to inflate ad prices artificially, a point Judge Mehta agreed with. He concluded that Google’s monopoly power enabled it to charge supracompetitive prices for search ads, leading to monopoly profits. However, the judge did not find Google to have a monopoly in the broader search advertising market.

Google’s Response and Future Implications:

In response to the ruling, Google’s President of Global Affairs, Kent Walker, expressed disappointment but acknowledged the judge’s recognition of Google’s quality and innovation in search. Walker announced that Google plans to appeal the decision, while continuing to focus on developing user-friendly products.

The judge has yet to impose any remedies, leaving the possibility open for significant changes in how Google operates or even the potential breakup of parts of its business. This case is part of a broader antitrust effort by the DOJ, with another trial concerning Google’s ad tech business scheduled for September.

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