Google says it will appeal antitrust ruling — what it could mean for big tech companies

Key conclusions

Alphabet said it plans to appeal after a judge ruled the company violated antitrust laws to maintain a monopoly on Google’s search engine.
Google has signed distribution agreements with companies like Apple that have made Google Search the default search engine for users.
If the appeal is successful, it could be a good sign for other big tech companies that could face similar antitrust cases.
If the appeal is rejected, the U.S. government will decide how to address Google’s search engine monopoly, which could involve changing distribution agreements.

After a federal judge ruled that Alphabet ( GOOGL )-owned Google violated antitrust law by having a monopoly on the Google search engine, Google said it plans to appeal the decision, a move that could have implications for future antitrust cases by big tech companies.

Google responded to the ruling by saying that “the decision recognizes that Google offers the best search engine but says we shouldn’t be able to easily share it.”

The judge found that Google’s exclusive distribution agreements were problematic.

Google has entered into agreements with browser makers, major Android original equipment manufacturers (OEMs) and U.S. mobile network operators under which it pays “traffic acquisition costs (TACs)” to companies like Apple (AAPL) to make Google search the default search engine, the lawsuit describes.

What next if Google plans to appeal the decision?

The results, which could set a precedent for antitrust actions by big tech companies, may not be seen for months or even years.

If the appeal is successful, Google could uphold its distribution agreements and calm concerns about other major tech companies that could be subject to similar antitrust proceedings.

If the courts reject Google’s appeal, the U.S. government will determine how the company should be redressed for its antitrust violations. That could include monetary penalties, forcing changes to Google’s contracts, or other remedies to break the company’s monopoly on the search market.

These actions could benefit competitors like Microsoft’s (MSFT) Bing or OpenAI’s recently announced SearchGPT service, and impact companies involved in distribution deals like Apple.

Alphabet shares were little changed Tuesday, up more than 13% year to date.