Shauna Lewis
Aug 7, 2024

US judge rules that Google acted illegally to monopolise online search

A US judge has declared Google a "monopolist" in a landmark ruling, finding the tech giant guilty of illegally stifling competition in the online search and advertising market.

Google was fined €4.125 billion (£3.5billion) by the European Commission in 2022
Google was fined €4.125 billion (£3.5billion) by the European Commission in 2022

Google has acted illegally to maintain its monopoly on online search and advertising, a US judge has ruled in a court case brought by the US Department of Justice.

The process began in 2020 when the DOJ sued the company for its control of 90% of the online search market.

During a 10-week trial in Washington DC, prosecutors said Google had paid more than $10 billion (£7.8 billion) a year to Apple, Samsung and Mozilla to be pre-installed as the default search engine across platforms.

Prosecutors said that, as a result, other companies had not had the opportunity or resources to compete with Google.

It is unclear what penalties Google and parent-company Alphabet will face, with fines set to be decided at a future hearing.

In his ruling, US District Judge Amit Mehta wrote: “Google is a monopolist, and it has acted as one to maintain its monopoly.”

In response, Alphabet said: “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”

During the trial, Google’s lawyer John Schmidtlein said that Google was winning “because it’s better”.

Mehta’s ruling contradicted that, however, stating that if “new a entrant [was] positioned from a quality standpoint to bid for the default”, they would have to pay partners “upwards of billions of dollars in revenue share”.

Alphabet plans to appeal against the ruling.

Google UK has been contacted for comment.

 

Source:
Campaign US

Related Articles

Just Published

1 hour ago

The biggest shift in PR history is not AI

Agencies need to address a fundamental shift in the nature of the PR industry, says Instinctif Partners’ Jim Donaldson

1 hour ago

Publicis grows 4.9% in Q1; says new business streak ...

Agency group is “extremely confident” it will hit annual growth forecast, expected to be between 4% and 5% in 2025

10 hours ago

Women to Watch 2024: Nicole Geekie, Jaywing

Geekie’s pivotal role in evolving Jaywing’s service offering now brings the agency more than half of its revenue from The Studio, underpinning the importance of performance-driven solutions to marketers.

10 hours ago

Advertising in space: One giant leap for adland?

Brands are increasingly exploring the lucrative potential of advertising in space, with companies like StartRocket pursuing orbital billboards while others opt for more environmentally friendly near-space marketing alternatives.