Summary: US Court Determines Google to be a Monopolist

The U.S. court has determined that Google established a billion-dollar monopoly to stifle competitors in online search and advertising.

The lawsuit, filed in October 2020 to enhance online competition, alleged that Google illicitly utilized payments to browser developers, mobile device manufacturers, and wireless carriers to secure its position as the default search engine and deter users from exploring other options.

Google was preloaded as the exclusive default search engine on devices, making it difficult for competitors to access users.

The case was brought forward by the United States Department of Justice and a coalition of attorneys general from almost every state, with the attorney general serving as the primary legal advisor.

Mehta’s ruling stated, “Google is a monopolist, and it has operated as one to maintain its monopoly. It has breached Section 2 of the Sherman Act.”

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Google commands approximately 90 percent of the online search market and 95 percent of search on smartphones.

The Sherman Act, an antitrust law facilitating fair competition among rivals, includes Section 2 pertaining to monopolization.

In 2021, Google alone paid $26 billion to partners to secure its dominance in the market, as noted by Mehta.

“The default position holds immense value,” Mehta stated.

“Even if a new entrant had the quality to compete for the default position when an agreement expires, the firm would only be able to compete if it were willing to compensate partners with billions of dollars in revenue share and cover any revenue losses resulting from the change.”

Mehta highlighted that in 2009, 80 percent of searches in the U.S. were conducted through Google, rising to 90 percent by 2020, with 95 percent on smartphones. Bing, the second-place competitor, only held a 6 percent share.

Kent Walker, president of Google Global Affairs, stated in an email to The Epoch Times that “this ruling acknowledges that Google offers the best search engine but concludes that we shouldn’t be allowed to make it readily accessible.

“In light of this, and the increasing diversity in how people seek information, we intend to appeal,” Walker said. “Throughout this process, our focus will remain on creating products that are useful and user-friendly.”

Tech giants Apple, Meta, and Amazon have also faced antitrust lawsuits in recent years.

The case is viewed as the most significant antitrust trial of the century.

Chase Smith and Reuters contributed to this report.