US Judge Sentences Google’s Search Practices Illegal

A US judge has ruled that certain Google practices in the internet search engine market are anti-competitive because the company unfairly promoted its browser.

It’s a triumphant moment for the U.S. Justice Department and a stumble for Google. But it’s also a turning point for the tech industry and a precedent for future antitrust cases. As reported BBCThe case was originally brought by the Department of Justice in 2020 and aims to increase competition in innovative sectors of the U.S. economy.

The 277-page opinion by Justice Amit Mehta found that Google pays billions to ensure its position as the default search engine on smartphones and browsers. “Google is a monopoly and operates like a monopoly to maintain its monopoly,” the judge wrote.

It’s hard to say at this point what the effect or impact of this ruling will be, but it’s possible it could lead to significant changes for Alphabet, Google’s parent company, given the fines. Of course, the court will decide these cases, but the company could be required to make significant changes if the fine is significant.

The company plans to appeal the decision, arguing that its success comes from providing people with better search engines. However, U.S. Attorney General Garland called the ruling a “historic victory for the American people” and noted that no company should be above the law.

The decision is significant because it goes to the heart of Google’s business, its search engine and related advertising. Overall, the ruling raises questions about the relationship between market dominance and fair competition in an increasingly digitally influenced world. The decision is no exception in the tech industry. Federal antitrust regulators have filed similar lawsuits against other key players in the market, including Meta, Amazon and Apple.

The 10-week trial in Washington finally exposed Google’s business approach. Prosecutors say Google spent billions of dollars a year to become the default search engine on various platforms, including through deals with Apple, Samsung and Mozilla.

According to the U.S. government, Google typically invests more than $10 billion a year in this privilege. This strategy not only protects Google’s access to user data but, prosecutors have argued, makes it harder for other companies to compete effectively.

Justice Department lawyer Kenneth Dintzer said, “The best testament to the significance of default is Google’s checkbook.” Google’s search engine generates most of its revenue by displaying ads on its results pages. Google’s lawyers say its search engine is popular with users because of its quality and ongoing improvements.

Representing Google’s interests, John Schmidtlein noted that Google “wins because it’s better.” The competition Google faces includes the popular general search engine, Microsoft’s Bing, as well as specialized sites and apps for specific types of searches, such as choosing and ordering restaurants or flights.

But in his ruling, Judge Mehta stressed that the significant advantage is “extremely valuable real estate” that allows the company to outperform its competitors in terms of quality. The judge said that even if the new search company were to deliver search results of the same quality, it would not stand a chance without the billions of dollars invested in securing default positions.

As a result, Google is facing another antitrust case over its ad tech, which is set to go to trial in September. In addition, the company has already faced significant fines in similar monopoly cases in Europe, making this decision a key decision in the ongoing conflict over market power in the digital economy.

While we don’t yet know the details of the penalties or the changes Google will have to make, it’s clear that this decision could change the face of the digital advertising and online search market in the coming years.

See also: Alphabet beats Q2 revenue and profit expectations on strong ad demand

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Tags: cloud, Google, Google cloud