US Court Rules Against Google in Antitrust Lawsuit

A US Federal court ruled that Google has breached antitrust laws over its practices related to search engines.

The landmark ruling states that Google’s distribution agreements breached competition laws in the US, going as far as to say that the tech giant is “a monopolist” and “acted as one to maintain its monopoly.” The decision also alleges that Google’s dominant position has allowed it to charge higher rates for its advertising.

The investigation into Google’s practices started in 2020, following two lawsuits that claimed Google was restricting competition while maintaining a monopoly.

While the court acknowledges that Google offers a technologically superior search engine due to its innovative research and development, it puts into question Google’s default distribution on a number of devices. When a user buys a new mobile device and uses a browser to search, such as Safari on iPhones, Google is often set as the default search engine.

Google has entered into these distribution agreements with several parties in the search chain, including companies providing internet browsers, manufacturers of computers, tablets and mobile phones, and even wireless carriers. These companies then share in the ad revenue Google generates.

In 2021, the advertising spend via general search engines reached $150 billion and in 2020, Google searches accounted for nearly 90% of all searches in the United States. This rate jumps even higher when considering mobile devices.

In a statement, The Justice Department reiterated that “no company… is above the law.”

Assistant Attorney General Kanter said, “This landmark decision holds Google accountable. It paves the path for innovation for generations to come and protects access to information for all Americans.”

Google’s President of Global Affairs, Kent Walkers, said via X that it intends to appeal the decision, and that “as this process continues, we will remain focused on making products that people find helpful and easy to use.”

This ruling will likely lead to a separate proceeding that will investigate whether Google faces any penalties and how to restore competition, a process that could take months – or even years – to conclude.