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A federal judge in the United States has ruled that Google spent billions of dollars to build an illegal monopoly and become the world’s automated search engine, violating antitrust laws.
The ruling is a first victory for U.S. antitrust regulators, which have filed several lawsuits challenging the market dominance of major technology companies.
The ruling paves the way for a second trial to work out a possible solution to the issue, which could include breaking up Google parent Alphabet, which would change the landscape of online advertising that Google has dominated for years.
The ruling also gives the green light for antitrust enforcers to sue Big Tech companies, an industry that has been the subject of intense criticism from across the political spectrum.
“The court concludes that Google, as a whole, is and will continue to be a monopoly,” U.S. District Judge Amit Mehta wrote.
The massive search engine controls about 90% of the online search market and 95% of smartphone searches.
In 2023, Google advertising accounted for 77% of Alphabet’s total sales.
Alphabet said it intends to appeal the ruling.
“This decision recognises that Google offers the best search engine, but concludes that we should not be allowed to make it readily available,” Google said in a statement.
Attorney General Merrick Garland described the ruling as a “historic victory for the American people,” adding that “no company, no matter how large or influential, can be above the law.”
White House spokeswoman Karine Jean-Pierre said: “The pro-competition ruling is a victory for the American people,” adding: “Americans deserve an internet that is free, fair and open to competition.”
- Billions of dollars paid
Mehta noted that Google paid $26.3 billion in 2021 alone to ensure its search engine became the default on smartphones and browsers and maintained its dominant market share.
The ruling is the first major decision in a series of cases against big tech companies alleging monopoly. The court heard the case from September to November last year, which was brought by former President Donald Trump’s administration.
Federal antitrust regulators have also filed lawsuits against MetaPlatforms, Amazon and Apple over the past four years, accusing the companies of maintaining illegal monopolies.
(Reuters)
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