Judge rules against Google in antitrust case

In a landmark decision that could shake up the internet and cripple one of the world’s most iconic companies, U.S. District Judge Amit Mehta ruled that search engine Google illegally uses its dominant position to limit competition and stifle innovation.

The ruling is a vindication of the actions of antitrust regulators at the Justice Department, which filed the suit nearly four years ago, when Donald Trump was president. The department has stepped up its efforts to curb the influence of big tech companies under President Joe Biden.

Driving the News: Google and its parent company Alphabet have argued that Google’s popularity stems from consumers’ overwhelming desire to use a search engine that is good at what it does, becoming synonymous with finding information online.

• However, the judge found that Google operated an illegal monopoly.
• The ruling begins the next phase of legal proceedings to determine what penalties should be imposed to repair the damage and restore a more competitive situation. It could result in a wide-ranging order requiring Google to liquidate parts of its internet empire or prohibiting it from spending more than $20 billion a year.

Distance: Microsoft, one of Google’s main rivals, could benefit significantly from a major reorganization that could prove successful for Microsoft’s Bing search engine.

• The decision could hurt Google at a key moment that is changing the face of technology in the era of artificial intelligence, and could affect the rivalry between Microsoft and early AI leader Google.

What are we watching: The ruling does not exempt Google from other legal threats it faces both in the United States and abroad, including a federal trial scheduled to begin in September in Virginia over allegations by the Justice Department that Google’s advertising technology constitutes an illegal monopoly.