A US judge ruled that Google illegally maintained a monopoly in the search engine market. The ruling, a major victory for the US Department of Justice, found that Google’s billions of dollars in payments to Apple and other companies to make its search engine the default option on smartphones and web browsers blocked competition.
A 2023 New York Times report said Google paid Apple “around $18 billion” in 2021 to be the default search engine in Safari on Macs, iPads, and iPhones.
Judge Amit Mehta said Google’s actions have allowed the company to raise online advertising prices without facing any meaningful competition. Google also holds a monopoly in search text ads, which are displayed at the top of search results pages.
The Department of Justice has accused Google of using its dominance to stifle innovation and harm consumers. The ruling could lead to big changes for Google, including forced divestitures or restrictions on its business practices.
Google has vowed to appeal the decision. The company argued that its deals with device makers benefit consumers by providing a seamless user experience.
The ruling is expected to have far-reaching implications for the tech industry. It could set a precedent for future antitrust cases.
The potential remedies for Google’s anticompetitive behavior are still to be determined. These could range from requiring Google to license its search technology to breaking up the company entirely. The decision comes as a major blow to Google, which has faced increasing scrutiny from regulators worldwide.
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