In a historic ruling, a US judge determined that Google had broken antitrust rules by utilising billions of money to create an unlawful monopoly and maintain its position as the default search engine on the internet. This ruling is a major win for federal officials who want to limit the power of Big Tech.
A Seismic Decision Against Big Tech
US District Judge Amit Mehta ruled on Monday, August 5, 2024, that Google has been abusing its supremacy to restrict competition and innovation. This decision may have an impact on Google, one of the most well-known corporations in the world, and change the way people use the internet. Judge Mehta asserts that Google dominates 95% of the smartphone search market and around 90% of the web search market.
“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” the judge concluded. This ruling opens the door for a second trial to decide on various remedies, such as the possible division of Alphabet, the parent company of Google.
Federal Authorities Targeting Big Tech
For federal authorities, particularly the Department of Justice, which brought the lawsuit during the Trump administration, this ruling represents a major turning point. It’s the first significant antitrust case in a generation brought against a top tech business. Lawsuits of a similar nature have been brought against Apple, Amazon, and Meta Platforms, among other major IT companies.
Google’s Response and Potential Impact
Google intends to file an appeal, claiming the decision unfairly singles out its achievements. “This decision recognises that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available,” Google stated in a statement. Alphabet’s stock dropped 4.5% after the decision, indicating investor apprehension amid general market falls. The revenue from Google’s advertisements, which made up 77% of Alphabet’s overall profits in 2023, is currently being scrutinised.
Government Reaction
US Attorney General Merrick Garland declared that no business is above the law and praised the decision as a major win for fair competition. The White House expressed its approval of the decision and emphasised how crucial it is to preserving markets that are competitive.
Future Legal Proceedings
Long-running court cases and appeals may characterise this case’s next phase, which could last until 2026. The way these legal processes turn out will have a significant impact on how Big Tech corporations are regulated going forward.
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