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Jimmy Williams
In a groundbreaking decision, the U.S. District Court in Washington, D.C., has ruled that Google illegally monopolized the online search and advertising markets over the past decade. U.S. District Judge Amit Mehta issued a 286-page ruling, concluding that Google secured approximately 90 percent of the internet search market through strategic partnerships with companies such as Apple, making it the default search provider in Safari, and similar agreements with Samsung and Verizon. Additionally, Google was found to have disadvantaged Microsoft in the search ad market, thereby maintaining its dominance.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta stated.
The ruling follows a 10-week bench trial that concluded in November, marking a significant victory in the bipartisan effort to address the power of major tech companies. This legal battle, which began during the Trump administration and has intensified under President Joe Biden, was initiated in October 2020. It represents the first major antitrust case against a tech giant since the federal government’s lawsuit against Microsoft in the late 1990s.
Florian Ederer, an antitrust and economics professor at Boston University, noted, “The ruling provides a historic boost to the antitrust authorities’ endeavor to rein in the abuse of market power by Google and other dominant tech companies and will have a similar landmark effect as the government’s challenge to Microsoft more than 20 years ago.”
Judge Mehta’s decision now sets the stage for a separate trial to determine the appropriate remedies. The DOJ has remained tight-lipped about its specific demands, although Antitrust Chief Jonathan Kanter has expressed support for structural remedies, potentially involving a breakup of Google’s operations. The DOJ also aims to limit anticompetitive practices in emerging technologies, especially artificial intelligence.
Central to the case are Google’s revenue-sharing agreements, valued at tens of billions of dollars annually, with entities like Apple, Mozilla, and Samsung. These agreements, which made Google the default search engine on numerous platforms, have been criticized for stifling competition and depriving consumers of high-quality, innovative services.
In a scathing commentary on Google’s practices, Judge Mehta criticized the company’s policy of deleting internal chat messages after 24 hours unless employees manually save them. “The court is taken aback by the lengths to which Google goes to avoid creating a paper trail for regulators and litigants,” Mehta wrote, referencing Google’s “Communicate with Care” initiative designed to mark many communications as legally privileged.
Although the judge ultimately decided against imposing sanctions for these practices, he issued a stern warning: “Any company that puts the onus on its employees to identify and preserve relevant evidence does so at its own peril. Google avoided sanctions in this case. It may not be so lucky in the next one.”
The ruling is a significant triumph for Jonathan Kanter, the aggressive attorney appointed by President Biden to lead the DOJ’s antitrust division. Kanter, who played a crucial role in developing the case during his time as a private lawyer, now sees his efforts come to fruition.
Despite the victory, the case is far from concluded. Alongside the impending remedy proceedings, Google is expected to file appeals, potentially extending the litigation for years. However, the company cannot automatically appeal the current ruling without court approval.
This landmark decision reinforces the effectiveness of antitrust laws in curbing monopolistic practices, even in today’s digital age. As the case progresses, it will undoubtedly serve as a pivotal reference point for future actions against tech giants.
