In a landmark decision on Monday, a U.S. judge ruled that Google has violated antitrust laws by establishing an illegal monopoly in the search engine market. This verdict marks the first significant victory for federal authorities aiming to curb Big Tech's dominance.
U.S. District Judge Amit Mehta of Washington, D.C., declared that Google maintains its monopoly by controlling approximately 90 percent of the online search market and 95 percent on smartphones. \"The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,\" Judge Mehta stated.
The ruling sets the stage for a second trial to explore potential remedies, which could include breaking up Google’s parent company, Alphabet. Such a move would significantly alter the landscape of the online advertising industry long dominated by Google.
The legal process is expected to be lengthy, with possible appeals to the U.S. Court of Appeals for the District of Columbia Circuit and eventually the U.S. Supreme Court. The entire legal battle could extend into next year or even as far as 2026.
Following the announcement, shares of Alphabet dropped by 4.5 percent amid a broader decline in tech stocks driven by recession fears. In 2023, Google’s advertising revenue comprised 77 percent of Alphabet’s total sales.
Alphabet has announced plans to appeal Judge Mehta's decision. In a statement, Google commented, \"This decision recognizes that Google offers the best search engine, but concludes that we shouldn't be allowed to make it easily available.\"
Reference(s):
cgtn.com
