
A federal judge has determined that Google holds an illegal monopoly in search and text advertising markets. The decision marks a significant moment in tech industry regulation, being the first anti-monopoly ruling against a tech giant in decades.
The landmark case, initiated in 2020, argued that Google maintained its dominance in the search market by creating barriers to entry and fostering a self-sustaining feedback loop. The court concluded that Google's practices violated Section 2 of the Sherman Act, which prohibits monopolistic actions.
Judge Amit Mehta of the US District Court for the District of Columbia stated, "Google is a monopolist, and it has acted as one to maintain its monopoly."
The court focused on Google's exclusive agreements with Android and Apple's iOS devices, which reinforced its dominant position. The decision identified two key markets: general search services and general search text advertising. The ruling found that Google monopolised both markets but noted that general search advertising does not constitute a market, thus excluding it from monopoly control.
Attorney General Merrick Garland hailed the ruling as a "historic win for the American people," emphasising that no company is above the law. Google’s President of Global Affairs, Kent Walker, announced plans to appeal, arguing that the court acknowledged Google's superior search engine quality but restricted its availability.
Alphabet, Google's parent company, saw its shares drop over 4 per cent following the ruling, amidst a general decline in global stock markets.
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