US Court Finds Google Guilty of Search Engine Monopoly: Reuters
Moneylife Digital Team 06 August 2024
For the first time in over two decades, a US district court ruled that Google violated antitrust law, spending billions of dollars to create an illegal monopoly and become the world's default search engine. This is the first big win for federal authorities taking on Big Tech's market dominance, says a report from Reuters.
 
According to the report, the ruling paves the way for a second trial to determine potential fixes, possibly including a breakup of Google's parent Alphabet, opens a new tab, which would change the landscape of the online advertising world that Google has dominated for years.
 
In the ruling, US district judge Amit Mehta from the district of Columbia, Washington DC, says, "The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly."
 
Google controls about 90% of the online search market and 95% of smartphones. According to the ruling, Google systematically paid Samsung and Apple to use its search engine, which drove the company's value to the sky and brought in more than $300 billion in revenue, generated mainly by ads within the search engine. 
 
The ruling is also a green light to aggressive US antitrust enforcers prosecuting Big Tech, a sector that has been under fire from across the political spectrum.
 
Google says it will appeal the decision, arguing that its success is based on people preferring its superior products.
 
However, according to Reuters, the 'remedy' phase could be lengthy, followed by potential appeals to the US court of appeals, district of Columbia circuit and the US Supreme Court. The legal wrangling could play out into next year or even 2026.
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