Federal judge rules Google violated antitrust law

A federal judge has ruled that Google maintains an illegal monopoly in the search and advertising markets, marking a significant victory for the Justice Department.

Why it matters. It’s the first major ruling in a wave of tech monopoly cases brought by the U.S. government in recent years, potentially setting a precedent for future rulings against other tech giants.

Key details:

• Judge Amit Mehta ruled that Google violated Section 2 of the Sherman Act, which prohibits monopolies.
• The court focused on Google’s exclusive search deals with Android and Apple devices as key to its anticompetitive behavior.
• Google’s monopoly in general search has increased from around 80% in 2009 to 90% in 2020.
• Decision focuses on Google’s liability, not remedies
• The decision comes after a 10-week trial last fall

Why we care. Although immediate changes are unlikely, advertisers should start preparing for potential long-term impacts on their digital marketing strategies.

Between the lines. The case revealed that Google pays Apple $20 billion a year for default search status on iPhones.

The big picture. The ruling could influence how century-old antitrust laws are applied to modern digital markets in ongoing cases against Amazon, Apple and Meta.

What’s next:

• Corrective measures to address Google’s monopoly will be determined in subsequent proceedings
• Google faces another DOJ lawsuit over its ad tech business, starting September 9

What they say. “Google is a monopolist and has acted as such to maintain its monopoly,” Justice Mehta wrote in his decision.

The other side. Google plans to appeal the decision, in a statement made on X, arguing that it offers the best search engine and should not be penalized for making it readily available.

The main thing. While this is a major setback for Google, the full impact on its business practices remains to be seen as the case moves to the remedy phase.