August 6, 2024 Google has been found in violation of US antitrust law with its search business, a federal judge ruled Monday. This landmark decision by US District Judge Amit Mehta could reshape how millions of Americans access information online and challenge Google’s longstanding dominance. The ruling follows allegations that Google used exclusive contracts with companies like Apple to maintain its monopoly, thereby blocking potential competitors such as Microsoft’s Bing and DuckDuckGo.
Judge Mehta stated, “Google is a monopolist, and it has acted as one to maintain its monopoly,” citing violations of Section 2 of the Sherman Act. The decision focuses on Google’s exclusive deals within the mobile ecosystem, which were deemed anticompetitive. Although the court did not find Google to have a monopoly in search ads, this ruling is a significant move against Big Tech’s market control, reminiscent of the US government’s antitrust actions against Microsoft in the early 2000s.
Attorney General Merrick Garland hailed the ruling as a historic victory for the American people, emphasizing that no company is above the law. The White House echoed this sentiment, with Press Secretary Karine Jean-Pierre calling it a win for a fair and open internet. Google, however, plans to appeal the decision, arguing that the court acknowledged its status as the best search engine, which reflects consumer preference rather than anticompetitive behavior.
The ruling sets the stage for further proceedings to determine penalties, which could include changes to how Google contracts with device makers and online service providers. Other possible remedies might involve implementing a “choice screen” to inform users of alternative search engines, or monetary fines, although fines are less likely to be the primary enforcement tool. Antitrust officials have also not ruled out the possibility of breaking up Google to prevent stifling future innovation.
This decision adds to Google’s legal troubles, including a separate antitrust lawsuit concerning its advertising technology, scheduled for trial in September. The current ruling follows another antitrust defeat for Google in December, where a federal jury found its app store practices monopolistic. The impact of Mehta’s ruling could extend beyond Google, influencing other major tech antitrust cases involving companies like Apple and Amazon, and bolstering the Justice Department’s lawsuit against Live Nation.
The implications of this case are broad, potentially affecting the future of artificial intelligence. During the trial, Microsoft CEO Satya Nadella testified that Google’s search monopoly could give it an unassailable advantage in AI by leveraging its extensive search data. This ruling could hinder Google’s ability to maintain its search dominance at a crucial time when AI-powered search tools, such as OpenAI’s ChatGPT, are emerging as serious competitors.
