A federal judge has ruled that Google violated US antitrust law through its search business practices, marking a significant setback for the tech giant.

Judge Amit Mehta of the US District Court for the District of Columbia determined that Google has maintained its monopoly through exclusive distribution contracts with browser developers, mobile device manufacturers, and wireless carriers. These agreements establish Google as the default search engine on various platforms, securing what the judge called "extremely valuable real estate."

The ruling highlights Google's significant investment in securing default placements, with the company spending billions on contracts with key industry players like Apple. These arrangements have helped Google maintain its dominant position in the search market and fueled its vast online advertising business.

Key findings from the ruling:

• Google has violated Section 2 of the Sherman Act
• The company has acted as a monopolist to maintain its position
• Default search engine placement provides Google with a major advantage over competitors
• High search advertising prices reflect Google's monopolistic behavior

This case is separate from the Biden administration's 2023 antitrust lawsuit regarding Google's advertising technology business. The court will determine specific penalties in a separate proceeding, though Google is expected to appeal the decision.

This represents the first major federal decision in recent US government antitrust actions against tech companies, drawing comparisons to the landmark U.S. v. Microsoft case from 25 years ago. The final resolution may take months or years to fully materialize, with Google likely facing monetary fines among other potential penalties.

Related Articles

Previous Articles