IBL News | New York
A federal judge in Washington ruled that Google illegally monopolized the search market and related advertising, through exclusive deals, setting itself as the default option on phones and browsers. This violates U.S. antitrust law, said Judge Amit Mehta.
Google’s owner, Alphabet Inc., paid $26 billion to make its search engine the default option on smartphones and web browsers, effectively blocking any other competitor from succeeding in the market.
In a 286-page ruling, Judge Mehta stated that Google has consistently raised the prices of online advertising without consequences by monopolizing distribution on phones and browsers.
“The trial evidence firmly established that Google’s monopoly power, maintained by the exclusive distribution agreements, has enabled Google to increase text ads prices without any meaningful competitive constraint,” he wrote.
Antitrust enforcers alleged that Google has paid Apple, Samsung Electronics, and others billions over decades for prime placement on smartphones and web browsers.
This default position has allowed Google to become the most used search engine in the world and fueled more than $300 billion in annual revenue, largely generated by search ads.
This case is giving the Federal Government a win in its first major antitrust case against a tech giant in over two decades.
“This victory against Google is a historic win for the American people,” said Attorney General Merrick Garland. “No company — no matter how large or influential — is above the law. The Justice Department will continue to enforce the antitrust laws vigorously.”
Google said it plans to appeal the decision.
