The Justice Department suit claimed Google engaged in illegal acts to remain on top of search
This article has been updated to add a statement from Google.
A U.S. District Court Judge has ruled that Google violated antitrust laws in maintaining its dominance in search.
The suit, brought by the U.S. Justice Department, argued that Google resorted to illegal acts to stay far ahead of competitors. Judge Amit P. Mehta agreed.
Google is a monopolist, and it has acted as one to maintain its monopoly, Mehta wrote in his decision.
I don't think anyone will be surprised by the notion that Google acts like a monopoly, saidDamian Rollison, SOCis director of market insights.
"What's notable here is that the Department of Justice has been successful in officially designating them as such. Though I don't think Google's dominant position in search necessarily bothers most ordinary consumers, it is a position that's now under threat on several fronts -- competitively, with the rise of AI alternatives like Perplexity and SearchGPT; internally, with increasing complaints about Google's declining search quality; and now legally, with at least a possibility on the horizon of an AT&T-like breakup of Google's business divisions.
The government claimed that Google was able to maintain its status as the number one search engine by paying to have Google the default search engine on phones and browsers. The judge found that the arrangement helped the company rake in billions of dollars in sponsored-text advertising.
Google plans to appeal the ruling, Google President of Global Affairs Kent Walker issued a statement saying the company would appeal, and finding a silver lining in the ruling.
This decision recognizes that Google offers the best search engine, but concludes that we shouldnt be allowed to make it easily available, Walker said. As this process continues, we will remain focused on making products that people find helpful and easy to use.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-06 10:45:52