In a landmark decision, US District Judge Amit Mehta has ruled that Google has engaged in illegal monopolistic practices in the search engine market. This verdict represents a significant victory for antitrust regulators who have been striving to rein in the influence of Big Tech. Google, which dominates approximately 90% of the online search market and holds 95% of the smartphone market share, has been found to have abused its market power.
The case, initiated during the Trump administration, centered on Google’s extensive financial commitments to secure its position as the default search engine across a range of devices and platforms. Judge Mehta pointed out that Google spent $26.3 billion in 2021 alone to maintain these default agreements, underscoring the value and impact of default placement in the market.
In his ruling, Mehta stated, “Google is a monopolist, and it has acted as one to sustain its monopoly.” He emphasized that losing default status would have a severe financial impact on Google, highlighting the challenges new competitors face in penetrating the market.
The ruling sets the stage for a subsequent trial to determine appropriate remedies, which could include breaking up Google’s parent company, Alphabet. Such a move would have profound implications for the online advertising sector, where Google has long held a dominant position.
US Attorney General Merrick Garland praised the decision, calling it “a historic win for the American people” and affirming that “no company—regardless of its size or influence—is above the law.”
Google has announced plans to appeal the ruling, arguing that while it provides the best search engine, the decision unfairly restricts its ability to make it widely available.
The legal battle is expected to be protracted, with potential appeals extending to the US Court of Appeals and possibly the Supreme Court, potentially prolonging the case into 2026.
The ruling has already had an effect on Alphabet’s stock, which fell by 4.5% amid a broader downturn in the tech sector. Alphabet’s advertising revenue, which constituted 77% of its total sales in 2023, is likely to be a focal point in the ongoing legal process.
This case is part of a broader wave of antitrust actions targeting major tech companies, with ongoing investigations and lawsuits against Meta Platforms, Amazon.com, and Apple.
Senator Amy Klobuchar, chair of the Senate Judiciary Committee’s antitrust subcommittee, commended the bipartisan antitrust efforts, declaring, “It’s a huge victory for the American people that antitrust enforcement is alive and well in promoting competition.”
