Google’s multibillion-dollar agreements to make its search engine the default on web browsers and smartphones, including those from Apple and Samsung, were ruled unlawful by a US federal judge on Monday.
Judge Amit Mehta of the US District Court for the District of Columbia ruled that Google’s payments to partners—amounting to over $26 billion in 2021—effectively stifled competition in the market. In his 277-page decision, Judge Mehta concluded that Google had abused its monopoly in the internet search sector, violating Section 2 of the Sherman Act. The judge noted that Google maintained its dominance in the U.S. markets for general search services and general text advertising through exclusive distribution agreements.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta stated in his ruling. He found that Google’s actions blocked other competitors from succeeding, thus maintaining its grip on the market.
While the ruling confirmed Google’s antitrust violations, it did not prescribe immediate remedies. Judge Mehta will determine the next steps, which could include mandating changes to Google’s business practices or even breaking up its operations.
In response, Kent Walker, Google’s president of global affairs, announced the company’s intention to appeal. “This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Walker said. He added that the court acknowledged Google’s superior search quality and widespread user trust, stating, “Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal.”
U.S. Attorney General Merrick Garland lauded the ruling, stating, “This victory against Google is an historic win for the American people. No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”
The antitrust lawsuit, filed by the Justice Department in 2020 and supported by 38 state attorneys general, accused Google of monopolizing search and search advertising to the detriment of consumers and competitors. The lawsuit sought to halt Google’s anticompetitive practices and suggested structural remedies to address the harm.
The case progressed with discovery starting in December 2020 and concluding in March 2023. The court held a nine-week trial beginning in September 2023, with closing arguments in early May 2024, leading to Judge Mehta’s August 5 ruling.
Judge Mehta’s findings indicated that Google wielded “monopoly power” in general search services and general search text ads, with its exclusive agreements having anticompetitive effects. He wrote, “Google has not offered valid procompetitive justifications for those agreements. Importantly, the court also finds that Google has exercised its monopoly power by charging supracompetitive prices for general search text ads. That conduct has allowed Google to earn monopoly profits.”
The ruling marks a significant moment in the ongoing scrutiny of big tech companies’ market practices and their impact on competition.
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