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The verdict entails a change in the structure of the Internet and user experience.
A US Federal District Court ruled that Google illegally maintained a monopoly on the online search market. A court decision can change not only the company's business model, but also the structure of the Internet as a whole.
The judge concluded that Google abused its monopoly power by making multibillion-dollar deals with companies like Apple to set its search engine as the standard on their devices and browsers. The lawsuit against Google was filed by the Department of Justice and several states back in 2020, and the process itself began in September 2023.
Google spends billions of dollars every year to ensure that its search engine is placed favorably in web browsers and on smartphones. In 2021, the company spent $26 billion to be the default search engine on the Apple and Android platforms, with about $18 billion of that amount going to deals with Apple. According to the New York Times, Google shares 36% of its Safari ad revenue with Apple. The government claims that such payments do not allow competitors to develop their search engines to a level sufficient for competition.
The court concluded that Google is a monopolist and acted as such to maintain its monopoly. According to the court order, the company violated Section 2 of the Sherman Act, which prohibits monopolization.
Google plans to appeal the decision. According to the company, the court recognized that Google offers the "best search engine", but decided that it cannot be easily provided to users. The company's representative emphasized that Google has used its dominant position to create "the best and most useful search engine", which benefits both consumers and advertisers.
In addition to the monopoly issues, the court refused to impose sanctions on Google for not saving chat messages related to the case, although the Justice Department insisted that this was equivalent to destroying evidence. The court stressed that this detail should not be interpreted as justification for Google's actions.
The judge has not yet determined the penalties for Google. It can oblige the company to change the principles of the search business or even sell parts of it, which was supposed in the original lawsuit against the company. The final decision can be challenged and changed. The Justice Department welcomed the court's decision, emphasizing that it sets a precedent and paves the way for innovation for future generations, protecting access to information for all Americans.
Source
A US Federal District Court ruled that Google illegally maintained a monopoly on the online search market. A court decision can change not only the company's business model, but also the structure of the Internet as a whole.
The judge concluded that Google abused its monopoly power by making multibillion-dollar deals with companies like Apple to set its search engine as the standard on their devices and browsers. The lawsuit against Google was filed by the Department of Justice and several states back in 2020, and the process itself began in September 2023.
Google spends billions of dollars every year to ensure that its search engine is placed favorably in web browsers and on smartphones. In 2021, the company spent $26 billion to be the default search engine on the Apple and Android platforms, with about $18 billion of that amount going to deals with Apple. According to the New York Times, Google shares 36% of its Safari ad revenue with Apple. The government claims that such payments do not allow competitors to develop their search engines to a level sufficient for competition.
The court concluded that Google is a monopolist and acted as such to maintain its monopoly. According to the court order, the company violated Section 2 of the Sherman Act, which prohibits monopolization.
Google plans to appeal the decision. According to the company, the court recognized that Google offers the "best search engine", but decided that it cannot be easily provided to users. The company's representative emphasized that Google has used its dominant position to create "the best and most useful search engine", which benefits both consumers and advertisers.
In addition to the monopoly issues, the court refused to impose sanctions on Google for not saving chat messages related to the case, although the Justice Department insisted that this was equivalent to destroying evidence. The court stressed that this detail should not be interpreted as justification for Google's actions.
The judge has not yet determined the penalties for Google. It can oblige the company to change the principles of the search business or even sell parts of it, which was supposed in the original lawsuit against the company. The final decision can be challenged and changed. The Justice Department welcomed the court's decision, emphasizing that it sets a precedent and paves the way for innovation for future generations, protecting access to information for all Americans.
Source
