Google's search monopoly was ruled illegal by a US court
An American court has ruled that Google has an illegal monopoly on search. Over the years, the giant spent billions of dollars to become the default internet search engine. However, according to the court, this violated antitrust laws, as reported by Reuters.
The Reuters agency emphasises that "the ruling paves the way for a second trial to determine potential fixes, possibly including a breakup of Google parent Alphabet (GOOGL.O)." This means that the landscape of Internet advertising may change in the future.
The court's decision also signals to American antitrust authorities that it is worth fighting against Big Tech, even if it takes years.
"The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," assessed Judge Amit Mehta from Washington. Google controls about 90% of the online search market and 95% on smartphones. Mehta noted that in 2021, Google spent over $26 (£20) billion to secure its dominant market share in web browsers.
"The default [search engine] is extremely valuable real estate," recognised Mehta.
Stock down
Alphabet, whose shares fell by 4.5%, has already announced that it will appeal the verdict. The legal battle could last until 2026. Reuters notes that only last year, Google ads accounted for 77% of Alphabet's total sales.
In a published statement, Google emphasised that according to the court, their search engine is the best in the world but "concludes that we shouldn’t be allowed to make it easily available".
According to the United States Attorney General, this is a "historic victory for the American people." Merrick Garland added that "no company - no matter how large or influential - is above the law".
White House Press Secretary Karine Jean-Pierre also stated, "Americans deserve an internet that is free, fair, and open for competition".
