In a significant blow to Google’s primary business, a U.S. judge has upheld a lawsuit from the Department of Justice (DOJ) accusing the tech giant of monopolistic practices.
According to El Economista the DOJ contends that Google maintained its dominance in the search engine market by making multi-billion dollar payments to ensure its search engine remained the default choice on mobile devices and major web browsers, including Apple's iPhone, Safari, Samsung devices, and Mozilla's Firefox.
Specifically, Google shelled out $26 billion last year to secure its position as the automatic search engine on devices from leading global companies.
According to the judge, this strategy effectively "blocked any opportunities for rivals to succeed in the market," allowing Google to charge higher prices to advertisers due to its monopolistic power.
Google is a Monopolist
After thorough consideration of the evidence and testimonies, the judge concluded, "Google is a monopolist and has acted to maintain its monopoly." This decision marks a significant victory for the DOJ, which has been actively pursuing numerous cases against major U.S. tech companies over monopolistic practices.
The ruling does not immediately impose any penalties. The next phase will involve determining the exact repercussions Google will face for its conduct.
Potential penalties could range from a hefty fine to orders for the sale of some of its businesses, or even a breakup of the company into smaller, independent entities to foster competition—similar to historical cases involving AT&T and Standard Oil.
Google, owned by Alphabet Inc., is expected to appeal the decision.
