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A federal judge ruled that Google has a monopoly in general search and text advertising, according to a case that ended on Aug. 5. The case will proceed to a ruling on Google’s liability as a monopoly, but next steps have yet to be determined.
“The court concludes that Google is a monopoly and that it has maintained its monopoly as a monopoly,” Justice Amit Mehta said in a ruling Court decision“It violates Section 2 of the Sherman Act.”
This case is Antitrust investigations by the U.S. Department of Justice and state attorneys general that began in 2020accusing Google of “illegally using distribution agreements to hinder competition.” The issue was argued in court until May 2024.
Court rules Google search suppresses some competition
Specifically, Google created monopoly conditions in general search services and general search text ads. Google did not create monopoly conditions in search ads or general search ads, which will be treated separately because, as the court’s judgment states, Google either lacks power in the product market or that product market does not exist. (General search services, text ads, search ads, and general search ads are each evaluated separately based on their product markets or lack thereof, as well as other factors.)
The relationship between Google and Apple has received particular attention.
“Most users access general search engines through browsers (such as Apple’s Safari) or pre-installed search widgets on their mobile devices,” Mehta wrote. “These search access points are pre-set with a ‘default’ search engine. The default search engine is an extremely valuable resource.”
According to the court ruling, search advertising is Google’s main source of revenue – reaching $26 billion in 2020.
“This landmark ruling holds Google accountable,” Assistant Attorney General Jonathan Kanter said in a statement. A statement The U.S. Department of Justice issued the decision on August 5. “It paves the way for innovation for generations to come and protects access to information for all Americans.”
Google maintains its dominance thanks to the quality of its search results.
An anonymous Google spokesperson said: “This decision recognises that Google offers the best search engine, but concludes that we should not be allowed easy access to it.” In a statement to Reuters.
SEE: Google adds AI Lens, tag comparison, and history search features Chrome Last week on the browser.
What happens next?
For Google products, future lawsuits based on this precedent could lead to the separation of Google Search from its parent company Alphabet, or the reduction of some business functions. However, according to Reuters, Google plans to try to appeal the ruling before then.
The case intensifies competition between Google and Microsoft in the field of artificial intelligence
The case could shake up competition between Microsoft and Google, especially in artificial intelligence products, as Bing is the second-largest competitor to Google Search by a wide margin. Microsoft has been working to boost Bing’s popularity by adding AI-generated answers.
“The integration of generative AI is perhaps the most obvious example of how competition is improving the quality of search,” Mehta wrote.
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