A federal judge in the U.S. has made a significant ruling against Google, stating that the tech giant has violated antitrust laws by maintaining a monopoly in the search and text advertising markets. The case, initiated by the government in 2020, accused Google of creating barriers to entry and using a feedback loop to sustain its dominance in the general search market.
The court found that Google’s actions violated Section 2 of the Sherman Act, which prohibits monopolies. This decision is a landmark ruling, marking the first time in decades that a tech company has been found guilty of anti-monopoly practices.
The Department of Justice, along with a bipartisan group of attorneys general from 38 states and territories, including Colorado and Nebraska, filed separate antitrust suits against Google in 2020. These suits were consolidated for pretrial procedures to gather evidence.
Attorney General Merrick Garland hailed the ruling as a “historic win for the American people,” emphasizing that no company, regardless of its size or influence, is above the law. The Justice Department is committed to enforcing antitrust laws vigorously.
The court specifically pointed out Google’s exclusive search agreements on Android and Apple devices as contributing to its anticompetitive behavior and dominance in the search markets. The ruling focused on Google’s general search services and text advertising, where the company was found to have operated as a monopoly.
Kent Walker, Google’s president of global affairs, expressed the company’s intention to appeal the decision, highlighting the court’s acknowledgment of the quality of Google’s products. He stated that Google will continue to focus on creating helpful and user-friendly products.
Following the ruling, Alphabet shares experienced a decline of more than 4% on Monday, reflecting a broader trend of stock market decreases worldwide. Jennifer Elias, a reporter covering Alphabet Inc. and Silicon Valley culture for CNBC in San Francisco, provided insights into the impact of the ruling on Google’s parent company and the tech industry as a whole.
