A federal judge ruled on Monday that Google engaged in illegal monopolistic behavior with its online search and advertising practices. This marks the first significant win for U.S. antitrust authorities who have filed several lawsuits questioning BIG Tech’s dominance in the market.
U.S. District Judge Amit Mehta concluded that Google is a monopolist and has acted to maintain its dominance, controlling about 90% of the online search market and 95% on smartphones. The ruling sets the stage for a second trial to determine possible remedies, which could include breaking up the company or ending its practice of paying smartphone manufacturers billions of dollars annually to make Google the default search engine.
The “remedy” phase may be prolonged, potentially extending into 2025 or beyond, with possible appeals to the D.C. Circuit and U.S. Supreme Court. Following the ruling, shares of Google’s parent company Alphabet fell by 4.3%, reflecting broader declines in tech stocks.
Alphabet plans to appeal Judge Mehta's decision. Mehta highlighted that Google paid $26.3 billion in 2021 to secure its default status on smartphones and browsers, a strategy critical to maintaining its market share.
The ruling is part of a broader antitrust effort targeting alleged monopolistic practices in Big Tech, with this particular case filed during the Trump administration. According to Emarketer senior analyst Evelyn Mitchell-Wolf, any forced divestiture of Google’s search business could significantly impact Alphabet’s revenue, although immediate effects for consumers may be delayed due to the lengthy legal process.
