US Federal Court Determines Google as a Monopoly | Business Updates
According to a US court ruling, Google has been found to have illegally maintained an online search monopoly, marking a significant blow to the company’s dominance in the market. The US Justice Department and various states successfully sued Google in federal court, arguing that the tech giant used its position to make its search engine the default option on browsers and devices by paying smartphone makers billions of dollars.
This practice created obstacles for potential new or smaller search engines to enter the market, solidifying Google’s dominant position. Regulators in the US have been working to curb the power of tech giants like Google, Apple, Amazon, and Meta through legal actions by the Justice Department and the Federal Trade Commission (FTC).
Exclusive searches and Google ads
The focus of the case was on Google’s exclusive search agreements on Android, iPhones, and iPads. The department claimed that Google conducted nearly 90% of web searches, a figure denied by Google.
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The case also highlighted Google ads, which bring in billions for the company, as a contributing factor to the antitrust allegations. The department and states argued that Google created a monopoly within search results, with ad prices exceeding what would be expected in a free market, showcasing Google’s dominance.
Google defended itself by stating that it had provided a superior service for consumers and that its popularity was a result of being a better option. The US District Court for the District of Columbia, under judge Amit Mehta, did not outline any specific remedies in the ruling. It is possible that Google may be required to divest part of its business or alter its operations.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta stated.
Google has the opportunity to appeal the ruling.
