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In a landmark decision on Monday, a federal judge ruled that Google has illegally maintained a monopoly in the search and text advertising markets. The ruling, the first major antitrust judgment against a tech company in decades, found that Google violated Section 2 of the Sherman Act, which prohibits monopolistic practices.
Judge Amit Mehta of the U.S. District Court for the District of Columbia determined that Google has used its dominance in the general search market and text advertising to create barriers for competitors and sustain its market control. The case, initiated by the Department of Justice (DOJ) along with a coalition of 38 states and territories, was filed in 2020 and marks a significant legal setback for the tech giant.
The court’s decision focused on Google’s exclusive search arrangements with Android devices and Apple’s iPhone and iPad, which the judge found to be instrumental in cementing Google’s anticompetitive dominance. The ruling stated that Google operated as a monopoly in both general search services and general search text advertising.
Attorney General Merrick Garland hailed the decision as a “historic win for the American people,” emphasizing that no company is above the law. “The Justice Department will continue to vigorously enforce our antitrust laws,” Garland said in a statement.
In response, Kent Walker, Google’s president of global affairs, announced plans to appeal the ruling. Walker argued that the decision undermines the quality of Google’s products, stating, “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available.” He emphasized that Google remains committed to providing useful and accessible products.
Despite the ruling, the court found that while Google had monopolistic control over general search and text advertising, it did not have monopoly control over general search advertising.
Following the announcement, Alphabet’s stock fell more than 4%, contributing to a broader decline in global markets.