Important Takeaways:
- A U.S. judge ruled on Monday that Google violated antitrust law, spending billions of dollars to create an illegal monopoly and become the world’s default search engine, the first big win for federal authorities taking on Big Tech’s market dominance.
- The ruling paves the way for a second trial to determine potential fixes, possibly including a breakup of Google parent Alphabet, which would change the landscape of the online advertising world that Google has dominated for years.
- It is also a green light to aggressive U.S. antitrust enforcers prosecuting Big Tech, a sector that has been under fire from across the political spectrum.
- “The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” U.S. District Judge Amit Mehta, Washington, D.C., wrote. Google controls about 90% of the online search market and 95% on smartphones.
- The “remedy” phase could be lengthy, followed by potential appeals to the U.S. Court of Appeals, District of Columbia Circuit and the U.S. Supreme Court. The legal wrangling could play out into next year, or even 2026.
- Mehta noted that Google had paid $26.3 billion in 2021 alone to ensure that its search engine is the default on smartphones and browsers, and to keep its dominant market share.
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