09 Aug 2024

Google Found in Violation of Antitrust Laws, Signaling Major Shift in Tech Industry

In a landmark decision, a U.S. judge recently ruled that Google violated antitrust law by spending billions of dollars to create an illegal monopoly as the world’s default search engine.  The ruling, certainly the first major win for federal authorities against Big Tech’s market dominance in over two decades.  This could therefore lead to significant changes in how Google operates.

The Ruling

U.S. District Judge Amit P. Mehta, in his 277-page decision, found that Google abused its dominance in the search market by monopolizing search queries on smartphones and browsers, thereby throttling competition and harming consumers.  This violation of Section 2 of the Sherman Act mirrors some of the most significant antitrust cases in U.S. history, including the breakup of AT&T’s telephone monopoly, Standard Oil, and Microsoft’s illegal bundling of Internet Explorer with Windows.

Google currently controls approximately 90% of the online search market and 95% on smartphones.  The ruling is a substantial victory for the Department of Justice.  The institution has been increasingly aggressive in its pursuit of antitrust cases against major tech companies.  The last significant antitrust ruling in the tech industry targeted Microsoft more than two decades ago.

The Aftermath

The ruling marks a pivotal moment in the ongoing efforts by U.S. regulators to rein in Big Tech’s market power.  Over the past four years, federal antitrust regulators have also sued Meta Platforms, Amazon.com, and Apple, accusing these companies of illegally maintaining monopolies.

Despite the ruling, the road ahead remains complex.  Google has further stated that it plans to appeal the decision, which could prolong the legal battle into 2026. The upcoming “remedy” phase could consequently involve lengthy legal proceedings, including potential appeals to the U.S. Court of Appeals, District of Columbia Circuit, and the U.S. Supreme Court.

This decision therefore has the potential to reshape the competitive landscape of the tech industry.  If the ruling leads to a breakup of Google, it would mark one of the most significant regulatory actions against a technology company in history.

 

Authors: Nikola Ivković, Vasilije Bošković

Photo: Christie Hemm Klok for TNYT