Google faces antitrust ruling: Monopoly practices under fire
Google has an illegal monopoly on search, an American court has ruled. The giant spent billions of dollars over the years to become the default internet search engine, but according to the court, it violated antitrust laws in doing so, Reuters reports.
Reuters emphasizes that "the ruling paves the way for a second trial to determine potential fixes, possibly including a breakup of Google parent Alphabet (GOOGL.O)." This means that the landscape of Internet advertising may change in the future.
The court's ruling also signals to American antitrust authorities that it is worth fighting Big Tech, even if it takes years.
"The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," evaluated Judge Amit Mehta of Washington. Google controls about 90% of the online search market and 95% on smartphones. Mehta noted that in 2021, Google spent over CAD 35 billion to ensure its dominant share in the browser market.
"The default [search engine] is extremely valuable real estate," Mehta noted.
Shares down
Alphabet, whose shares fell by 4.5%, has already announced that it will appeal the verdict. The legal battle could last until 2026. Reuters notes that just last year, Google ads accounted for 77% of Alphabet's total sales.
Google emphasized in a published statement that, in the court's view, its search engine is the best in the world but "concludes that we shouldn’t be allowed to make it easily available."
According to the United States Attorney General, this is a "historic victory for the American people." Merrick Garland added, "no company - no matter how large or influential - is above the law."
White House Press Secretary Karine Jean-Pierre also stated, "Americans deserve an internet that is free, fair, and open for competition."
