In a historic ruling, Judge Amit P. Mehta of the US District Court for the District of Columbia declared that Google illegally monopolized the search engine market. According to a comprehensive 286-page document, Google paid $26 billion to smartphone and web browser owners to ensure its search engine remained the default option, effectively stifling competition.
The ruling highlighted that Google does not hold a monopoly in the search engine advertising market, with competitors like Amazon and Walmart entering the scene. However, Google does maintain a monopoly over search text ads, which prominently appear at the top of search result pages.
This verdict marks the first time in over two decades that a US District Court has found a tech company guilty of monopolistic practices. The court has not yet detailed the specific changes Google will be required to make. Potential measures include offering Android users in the US the choice of their default search engine during device setup. More drastic decisions could involve separating Google’s search business from its other products, such as Android and Chrome, possibly leading to the most significant corporate breakup since AT&T in 1984.
The court’s findings revealed that Google systematically paid companies like Samsung and Apple to prioritize its search engine, a strategy that significantly boosted its revenue. Google’s search engine dominance grew from an 80% market share in 2009 to 90% in 2020, generating over $300 billion primarily through advertising.
Google has announced plans to appeal the decision, asserting that its market success is due to the quality of its products rather than unfair practices.
