US Judge Declares Google’s Online Search Monopoly Illegal: Stifling Competition and Innovation

U.S. Judge Amit Mehta Rules Google Illegally Maintained Online Search Monopoly

U.S. Judge Amit Mehta stated that Google acted illegally to maintain its monopoly in online search. Google utilized its dominance to crush competition and stifle innovation, spending billions of dollars in the process.

This ruling comes after nearly a year-long trial. After reviewing evidence and testimonies from officials of Google, Microsoft, and Apple, Judge Amit Mehta delivered a 277-page decision on Monday, August 5. Kent Walker, Google’s Global Affairs Chairman, announced that the company will appeal the decision.

Google’s Dominance is Proof of Its Monopoly

The ruling revealed that Google’s dominance in the search market is evidence of its monopoly. Google holds an 89.2% share in the general search service market, which rises to 94.9% on mobile devices. Judge Mehta’s decision highlighted that Google spends billions of dollars annually to make its search engine the default on new mobile phones and electronic gadgets.

U.S. Attorney General Merrick Garland hailed this decision as a historic victory for the American people. According to media reports, the next phase could involve prolonged legal proceedings and appeals, potentially extending until 2026.

Major Setback for Alphabet

The court’s decision is a significant blow to Google and its parent company, Alphabet, which argued that its popularity stemmed from users’ strong preference for its search engine, which has become synonymous with online searching.

According to a recent report by investment firm BOND, Google’s search engine processes approximately 8.5 billion queries daily worldwide, nearly double the daily searches from 12 years ago.

Alphabet’s Stock Performance

Amidst a global market downturn, shares of Alphabet, Google’s parent company, closed yesterday at $160.64, down 4.61%. The stock has declined 6.62% over the past five days and 15.67% over the past month. However, Alphabet’s shares have provided a positive return of 10.47% over the past six months and 21.75% over the past year.