November 22, 2024

US Court Finds Google Guilty of Illegal Monopoly Practices

Google

New Delhi: In a groundbreaking decision, a U.S. court has ruled that Google violated antitrust laws by investing billions to create an illegal monopoly, establishing itself as the default search engine globally. The ruling, delivered by U.S. District Judge Amit Mehta, found that Google controls approximately 90% of the online search market and 95% of the search market on smartphones.

Judge Mehta’s judgment declares Google as a monopolist and sets the stage for a second trial to explore potential remedies, including the possibility of breaking up Alphabet, Google’s parent company. This next phase could involve lengthy legal proceedings and appeals, potentially extending into 2026. Google has announced plans to appeal the decision, claiming it unfairly targets its market success and the ease of access to its search engine.

Following the court’s decision, Alphabet’s stock price dropped by 4.5%, reflecting broader market declines. Google’s advertising revenue, which made up 77% of Alphabet’s total sales in 2023, could face significant repercussions from the ongoing legal battle. Both U.S. Attorney General Merrick Garland and the White House have praised the ruling as a significant win for fair competition, affirming that no company is above the law.

Initiated during the Trump administration, this case represents one of the most significant antitrust actions against a major tech company in recent history. The outcome could set important precedents for future antitrust actions against other tech giants, such as Meta Platforms, Amazon, and Apple, marking a critical moment in the regulation of the technology sector.

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