Judge rules that Google ‘is a monopolist’ in US antitrust case

Aug 06, 2024 02:02 AM - 4 months ago 94158

A national judge ruled that Google violated US antitrust rule by maintaining a monopoly successful nan hunt and advertizing markets.

“After having cautiously considered and weighed nan witnesser grounds and evidence, nan tribunal reaches nan pursuing conclusion: Google is simply a monopolist, and it has acted arsenic 1 to support its monopoly,” nan court’s ruling, which you tin publication successful afloat astatine nan bottommost of this story, reads. “It has violated Section 2 of nan Sherman Act.”

Judge Amit Mehta’s determination represents a awesome triumph for nan Department of Justice, which accused Google of illegally monopolizing nan online hunt market. It’s not yet clear what specifically this will mean for nan early of Google’s business, arsenic this first uncovering is only astir Google’s liability, not astir remedies.

The determination is nan first successful a activity of tech monopoly cases brought by nan US authorities successful caller years. While 2 decades passed betwixt nan Department of Justices’ antitrust suit against Microsoft and its adjacent tech anti-monopoly lawsuit against Google, revenge successful 2020, respective much specified cases quickly followed. Amazon, Apple, and Meta each now look their ain monopolization lawsuits from nan US government, and Google will go to proceedings against nan DOJ a 2nd clip this fall complete a abstracted challenge of its advertizing exertion business. That makes Mehta’s determination successful this lawsuit moreover much consequential for really different judges whitethorn see really to use century-old antitrust laws to modern integer markets.

Mehta oversaw a 10-week proceedings successful nan Google hunt lawsuit past fall, which culminated successful two days of closing arguments successful early May. The trial, which took spot successful DC District Court, convened galore large players successful Silicon Valley, including Google CEO Sundar Pichai, Microsoft CEO Satya Nadella, and Apple executive Eddy Cue. The DOJ based on that Google illegally monopolized nan wide hunt advertizing marketplace by efficaciously cutting disconnected cardinal distribution channels for rivals done exclusionary contracts. For example, Google has deals pinch browser makers for illustration Mozilla and telephone manufacturers for illustration Apple and Samsung to make their hunt motor nan default connected their products. Google besides makes default position for immoderate of its apps a information of entree to nan Play Store for phone-makers utilizing its Android operating system.

Google based on passim nan proceedings that it has not acted anticompetitively and that its ample marketplace stock is simply a consequence of creating a superior merchandise that consumers enjoy. It contended that nan Google hunt business should beryllium compared to a overmuch larger scope of peers than nan authorities projected successful its marketplace definition, suggesting it competes straight pinch different platforms wherever hunt is simply a large portion of nan business, moreover if they don’t scale nan web (such arsenic Amazon).

One of nan astir important revelations from nan lawsuit was nan size of Google’s payments to Apple to unafraid nan default hunt motor spot connected iPhone browsers. An master witnesser for Google fto slip that nan institution shares 36 percent of hunt advertisement gross from Safari pinch Apple. In 2022, Google paid Apple $20 cardinal for nan default position, according to Apple’s Cue.

During closing arguments, Mehta homed successful connected those payments, wondering really different players successful nan marketplace could perchance displace Google from that position. Since only a institution pinch capable superior to connection Apple a comparable aliases amended woody and nan expertise to create a value hunt motor pinch constricted personification information could guidelines a chance, Mehta asked, “If that’s what it takes for personification to dislodge Google arsenic nan default hunt engine, wouldn’t nan folks that wrote nan Sherman Act beryllium concerned astir it?”

The adjacent antitrust proceedings betwixt nan DOJ and Google is set to statesman connected September 9th.

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