Google found guilty of maintaining illegal monopoly on search

A U.S. judge ruled on Monday that Google violated antitrust law, spending billions to establish an illegal monopoly as the world's default search engine. This landmark decision marks a significant victory for federal authorities challenging Big Tech’s market dominance.

The ruling by U.S. District Judge Amit Mehta sets the stage for a second trial to determine remedies, which could include a potential breakup of Google's parent company, Alphabet. This outcome could dramatically alter the landscape of online advertising, where Google has long been a dominant force.

The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,

wrote Mehta.

Google controls approximately 90% of the online search market and 95% on smartphones.

The "remedy" phase of the trial could be prolonged, with possible appeals extending the legal battle into the coming years. Shares of Alphabet dropped 4.5% on Monday, amid a broader tech sector decline driven by recession fears. In 2023, Google advertising constituted 77% of Alphabet's total sales.

Alphabet plans to appeal Mehta’s ruling, stating,

This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.

U.S. Attorney General Merrick Garland hailed the ruling as “a historic win for the American people,” emphasizing that no company is above the law. White House press secretary Karine Jean-Pierre also praised the decision, calling it a victory for fair competition on the internet.