Google found guilty of violating antitrust laws in search
On August 5, the US Federal Court ruled that Google had an illegal monopoly in the field of online search and advertising.
Search giant Google has faced a historic ruling. A US federal judge has ruled that Google abused its dominant position in the online search and advertising markets, violating antitrust laws.
In a landmark case filed in 2020, the US government accused Google of abusing its dominant position in the search market. By creating a closed ecosystem and eliminating competitors, Google hindered the healthy development of the market. The court ruled that this behavior violated antitrust laws, negatively affecting consumer rights and fair competition.
Accordingly, Judge Amit Mehta of the District Court of Columbia (USA) wrote in the ruling that, “Google is a monopoly and has acted to maintain its monopoly.” Specifically, the search giant Google violated Section 2 of the Sherman Act. This ruling marks the first antitrust decision against a technology company in decades.
A coalition of the U.S. Department of Justice and attorneys general from 38 states and territories, led by Colorado and Nebraska, filed an antitrust lawsuit against Google in 2020. While each lawsuit has its own specifics, they all focus on allegations that the search giant has abused its dominant market position. To make the investigation more efficient, the lawsuits were consolidated in the pretrial phase.
US Attorney General Merrick Garland called the decision “a historic victory for the American people.” He asserted that: “No company, no matter how large or influential, is above the law. The Department of Justice will continue to vigorously enforce our antitrust laws.”
In its ruling, the court focused on Google's exclusive search agreements on Android devices and Apple's iPhones and iPads, saying they helped cement Google's anti-competitive behavior and dominance in the search market.
The court found that Google had maintained an overwhelming monopoly position in the online search industry, particularly in basic search and related text advertising. However, the ruling found that search advertising was not a market and therefore could not be subject to monopoly control.
Regarding this issue, Mr. Kent Walker, President of Global Affairs of Google said in a statement that the company intends to appeal the court's decision. He emphasized that Google will continue to defend its commitment to bringing the best products to users, as recognized by the court.
“The court acknowledged that Google owns the leading search engine, but it has limited its ability to make that product widely available,” Walker said. “We will not let this get in the way of delivering the best experience to our users.”
Shares of Alphabet, Google’s parent company, fell 4% in trading on August 5, directly impacted by the general market correction. This decline shows that investor sentiment is becoming more cautious amid global volatility.