A judge ruled Monday that Google’s exclusive search and text arrangements with Android and Apple are monopolistic. This marks the first technology anti-monopoly ruling in decades.
Legal Accusations
The Department of Justice and Attorneys General of 38 states separately accused Google of impeding competition by creating barriers to entry and taking other measures to ensure Google’s singular success.
Violation of the Sherman Act
In doing so, the federal court found that Google violated section 2 of the Sherman Act, the federal statute prohibiting monopolies.
Judicial Statement
In his decision, Judge Amit Mehta wrote, “Google is a monopolist, and it has acted as one to maintain its monopoly.”
Market Dominance
The case involves Google’s monopoly of general search services or its main search engine. In the past, Google competed with Yahoo for general search services. However, Google now has exclusivity agreements with Android and certain Apple products.
Illegal Monopoly in Advertising
Another area where the judge found Google held an illegal monopoly is general search text advertising, which is the text advertisements that accompany search results.
No Monopoly Found
In a third area, Judge Mehta concluded that no monopoly is possible. This area is general search advertising, which the judge determined is not a market.
Legal Proceedings
Initially, two suits were filed in 2020 against Google, first by the Department of Justice and secondly by Colorado, Nebraska, and 38 other states’ Attorneys General. Ultimately, the two cases were merged for the similarity and pretrial requirements for both cases.
Historical Ruling
The court’s decision to determine that Google has a monopoly is the first time in decades that an anti-monopoly ruling has been returned against a technology company.
Reaction from the Justice Department
U.S. Attorney General Merrick Garland said the decision marks “a historic win for the American people.” He continued, “No company– no matter how large or influential– is above the law. The Justice Department will continue to enforce our antitrust laws vigorously.”
Google’s Response
Google’s President of Global Affairs, Kent Walker, said the Company will appeal the ruling. He pointed out that the court recognized the high quality of Google’s products.
Google Response
Walker said, “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available. As this process continues, we will focus on making products people find helpful and easy to use.”
Impact on Stock Price
Alphabet, the holding company that owns Google, saw its stock price fall over 4 percent Monday.
Losses Also Include Fall Out from Global Sell-Off
The losses reflected a more significant global sell-off and the news of the legal outcome against Google.
