The ruling found Google violated antitrust laws with big deals. Will they end?
This week, Google lost a key antitrust case against the US Department of Justice. A federal judge ruled that Google created an illegal monopoly in online search and advertising. This decision could have significant effects on Google’s operations and how users interact with the internet’s top search page.
Judge Amit Mehta found that Google violated antitrust laws by forming exclusive agreements with device makers like Apple and Samsung. These deals, where Google paid billions to be the default search engine on their devices, helped Google build a monopoly and hindered competition. In 2021 alone, Google paid over $26 billion to companies, including Apple, to stay the default search option in Safari.
What happens next will decide if Google must drastically change its business practices or if it can overturn the ruling on appeal. This battle will also impact how regulators address big tech monopolies and their efforts to break up other alleged monopolies.
Google may be required to alter its search practices.
The ruling in US v. Google does not outline remedies for the company’s illegal monopoly in internet search, and the Justice Department did not request specific penalties during the case. Judge Mehta will conduct a separate trial, with the start date yet to be determined, to decide what actions the government should take against Google. These remedies could include changes to its contract practices or potentially breaking up the company.
Since the decision centers on Google’s default search agreements, one possible outcome is that Judge Mehta may rule that Google can no longer make such deals. This would let Google stay the default search engine if device makers choose it but would end the multibillion-dollar payments Google has used to secure that status. Apple and Samsung have not yet responded to requests for comment. Mozilla, which uses Google as the default search engine for its Firefox browser, gets 86% of its revenue—about $510 million out of $593 million—from Google’s search payments, according to Fortune magazine.
Mozilla stated, “We’re carefully reviewing the court’s decision to understand its potential impact on Mozilla and how we might influence the next steps. The Court did not decide on a remedy.”
Another possible outcome could resemble the situation in Europe, where regulators have required companies like Google, Apple, and Microsoft to offer a “choice screen” for users when they log in, allowing them to select their preferred browser.
Another antitrust lawsuit is on the horizon.
As Google prepares its response to losing the case, it is also gearing up for another lawsuit from the Justice Department targeting its digital advertising practices. This new lawsuit claims that Google has monopolized online advertising, forcing companies to use its technology and suppressing competition.
This second lawsuit poses a serious threat to a key part of Google’s revenue model. The company’s advertising division controls over a quarter of the US digital ad market and generates billions of dollars in revenue each year.
