In a landmark decision, Google was found to have violated US antitrust law with its search business.
As author of Capitalism XXL and "Gigantism", this is big news!
Antitrust rules are used to restore sound capitalism. @profgalloway @mcgillu https://t.co/PTEcwTdTvI— Geert Noels (@GeertNoels) August 6, 2024
US District Judge Amit Mehta concluded that Google has acted as a monopolist to maintain its dominance, violating Section 2 of the Sherman Act. The ruling is a major setback for Google’s core business, which has relied on exclusive contracts to secure its position as the world’s default search provider on smartphones and web browsers.
USfederal judge awarded the Justice Department a victory over #Google which violated antitrust laws to dominate online search. Google’s actions—paying billions to #Apple & other companies to be the default search engine on their platforms—created a barrier https://t.co/JS1nykJcmq
— Monika Schnitzer???? (@MonikaSchnitzer) August 6, 2024
These contracts, costing tens of billions of dollars, have hindered potential competitors such as Microsoft’s Bing and DuckDuckGo, the US government alleged. The court specifically pointed to Google’s exclusive deals with Apple and other key players in the mobile ecosystem as being anticompetitive. High prices in search advertising reflecting Google’s monopoly power were also cited.
A landmark victory—Google became a behemoth monopoly by squashing competitors & raising prices on consumers. DOJ & state AGs’ milestone antitrust win today will open up new innovation & help lower prices for all. https://t.co/4KVcvkdBx7
— Richard Blumenthal (@SenBlumenthal) August 5, 2024
Google plans to appeal the decision, arguing that the court recognized it as the internet’s best search engine, a reason consumers prefer it over competitors. The decision could lead to significant changes in how Google operates. Possible penalties and remedies may include imposing a “choice screen” to inform users about other available search engines or a monetary fine.
Google’s anticompetitive search business
There’s even a possibility of a Google breakup, as initially suggested by US antitrust officials.
WIN: In 2020, we filed an antitrust lawsuit against Google to end their illegal search engine monopoly.
Today's landmark decision is another step towards greater choice and competition, and better privacy protections in the online space.https://t.co/vMY1XBOFCK
— Andrea Joy Campbell (@MassAGO) August 5, 2024
US Attorney General Merrick Garland called the ruling “a historic win for the American people.” The White House lauded the decision, seeing it as a step toward ensuring a free, fair, and open internet for competition.
While the court did not find that Google has a monopoly in search ads, the ruling against its contracts could lead to further judicial scrutiny in other antitrust cases involving tech giants like Amazon and Apple. Experts consider this ruling a milestone akin to past major antitrust cases, like the breakup of AT&T’s telephone monopoly and Standard Oil, or Microsoft’s bundling of Internet Explorer with Windows. Critics, however, argue that this may benefit competitors rather than consumers.
Adam Kovacevich, founder of the tech advocacy group Chamber of Progress, highlighted that Microsoft, rather than the general public, might emerge as the biggest winner. The decision’s impact extends beyond Google’s search engine. It sends a clear message about the legality of business contracts and could influence the future course of technology and innovation, including the development of artificial intelligence.
As the ruling’s implications unfold, Google faces a prolonged appeal process and the possibility of additional regulatory measures, reshaping not just its search business but potentially the entire tech industry’s landscape.
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