A US ruling against Google has been seen as a potentially seismic moment for the company and the tech sector given its control of search and its related advertising business. — Photo: Andrej Sokolow/dpa
LONDON: Google has illegally exploited its dominance in the search engine market to stifle competition, a judge in the US has ruled.
The case has been seen as a potentially seismic moment for Google and the tech sector given its control of search and its related advertising business.
Here is a closer look at the case and what it could mean for Google and the wider industry.
What has happened?
In 2020, Google was sued by the US Department of Justice, which claimed the tech giant has abused its dominance in online search and advertising to stifle competition and harm consumers.
During the case, lawyers argued that Google’s monopoly enabled it to charge advertisers artificially high prices while also enjoying the luxury of having more time and money to invest in improving its search engine, an approach which impacted consumers.
For its part, Google dismissed these suggestions, arguing that consumers have historically changed search engines when they become dissatisfied with the results – highlighting how Yahoo had once dominated search in the 1990s before Google appeared.
But ultimately, after several months of reviewing evidence, the judge ruled that Google had breached US antitrust laws in how it operated.
What did the judge say?
In his decision, US District Judge Amit Mehta said Google was a “monopolist” that had “acted as one to maintain its monopoly”.
US attorney general Merrick Garland said the “victory against Google is an historic win for the American people”.
“No company, no matter how large or influential, is above the law. The Justice Department will continue to vigorously enforce our antitrust laws,” he said.
The technology giant is widely expected to appeal against the decision, and the process could take it all the way to the US Supreme Court.
What does the decision mean for Google and the wider tech sector?
This is the biggest question to come out of the case.
The decision by the judge sets up another legal phase where it must be decided what changes or penalties should be imposed on Google in order to protect competition.
The outcome of that decision could have a huge impact on the tech sector, as the changes could be as drastic as asking the company to dismantle parts of its online empire, or stop it spending huge sums of money each year to ensure Google search is the default search engine on the iPhone and other devices.
Or the judge could decide that only more modest changes are needed to protect competition and consumers, leaving Google relatively unscathed.
Any changes imposed would come at a critical time in the sector, as Google battles with Microsoft and others to lead the industry as it enters the age of AI. – PA Media/dpa
