Google’s Search Engine Monopoly Illegal; Stop Spending Millions to Stay Number 1: U.S. Court
Google spends billions on maintaining its position as the number one search engine globally. The company controls 90% of the online search market.
While users of MapMyIndia and Ola Maps must pay a fee, Google Maps features are available for free. However, businesses and service providers, whether large or small, are required to pay to use this service.
A ruling by U.S. Judge Amit P. Mehta has determined that Google has violated regulations. To maintain its default search engine status and preserve its monopoly, Google has illegally spent billions. This represents a significant victory for American federal authorities against major corporations.
Why Default Search Engines Shouldn’t Be Mandated
In the U.S., there is a law that mandates competition for everything. Americans are entitled to choose freely, including which search engine they use. Consequently, having Google as the default search engine on most smartphones is considered to be against this principle of choice.
Google compensates companies with substantial sums of money—often in the billions—to secure its position as the default. When the U.S. government became aware of this issue, it decided to take action and discovered that Google was operating unlawfully.
Alphabet Inc. Shares Drop
Recently, Alphabet Inc., Google’s parent company, experienced a 4.5% drop in its share price in a single day. This decline is attributed to global recession fears. Despite the U.S. court ruling, the company’s shares may continue to fluctuate. In 2023, Google advertising accounted for 77% of Alphabet’s total turnover.
What Actions Will Google Take?
Alphabet Inc. plans to appeal the U.S. court’s decision to a higher court. Google believes it offers the best service, but it feels that obstacles are being placed in the way of making this service easily accessible to people.
What Changes Will Occur if the Ruling Stands?
If the appellate court upholds the ruling, most smartphone companies will not be able to set Google Search as the default web browser on their devices. Instead, companies will have the option to set their own web browser as the default or offer customers a choice when they first perform a search.
If Google is not set as the default browser, it could result in significant losses for the company. Apple faced substantial losses when it removed Google as the default browser from its devices, and this impact is still felt today. If Google is also removed from Android devices, the company may struggle to absorb such a loss.
What if Donald Trump Wins the Election?
If former U.S. President Donald Trump wins the election, it could bring challenges for companies like Google and Meta (formerly Facebook). During his previous presidency, Trump took legal action against several tech giants, including Google, Microsoft, Amazon, and Apple, addressing their monopolies.
If Trump were to become president again, these companies might face renewed scrutiny and potential regulatory actions. Additionally, Trump’s administration had previously censored some of his photos and posts, which could make the situation more personal and contentious for Google and Meta.