The US court has ruled that Google unlawfully upheld an online search monopoly, marking a significant blow to the company’s market dominance. The tech behemoth faced a successful lawsuit in federal court by the US Justice Department and various states, alleging that it maintained its position as the most utilized internet search engine by incentivizing smartphone manufacturers with large sums of money to ensure Google as the default option on browsers and devices.
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This practice erected anti-competitive obstacles for potential new or smaller search engines, solidifying Google’s dominance further, as argued by the government, 38 states, and territories, spearheaded by Colorado and Nebraska.
US regulators have been working towards restraining the influence of tech giants like Google, Apple, Amazon, and Meta through legal actions initiated by the Justice Department and the Federal Trade Commission (FTC).
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The focus was mainly on Google’s exclusive search agreements concerning Android, iPhones, and iPads. The department contended that Google held approximately 90% of web searches, a claim which Google refuted.
Additionally, Google’s advertisements, which yield billions for the company, were included in the case, with the department and states contending that a monopoly existed within search results. They argued that the ad prices exceeded what would be expected in a free market, showcasing Google’s dominance.
Google claimed that its focus was on delivering a superior service to consumers and that its popularity stemmed from being “better” than the competition.
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Google argued that its success was a result of providing a superior service to consumers, asserting that it was “winning because it’s better”.
Judge Amit Mehta of the US District Court for the District of Columbia did not prescribe a remedy on Monday. He may decide to instruct Google to divest a portion of its business or alter its operational procedures.
“Google is a monopolistic entity and has operated as one to preserve its monopoly,” he remarked.
Google now has the opportunity to file an appeal.
