The court ruling on the illegal abuse of monopoly position is a significant blow to Google and its parent company.
Google plans to appeal the court’s decision. JUSTIN LANE, EPA / AOP
A US federal judge ruled that Google has a monopoly on search engine services, which it has abused to defeat competition. Monday’s decision is a major blow to Google’s parent company, Alphabet, and could significantly change how the tech giants do business.
In his decision, the trial judge Amit Mehta says Google has paid billions of dollars to secure its position as the default search engine on smartphones and Internet browsers.
– Google has a monopoly, and it has acted like one in order to maintain its position, Mehta writes in the decision.
Sanctions to be imposed on Google will be decided at a later hearing. Alphabet plans to appeal the ruling.
– The decision acknowledges that Google offers the best search engine, but its conclusion is that we should not make it easily available to people, the company’s statement says.
Minister of Justice Merrick Garland says the decision is “a historic victory for Americans.”
– No company, no matter how big or influential, is above the law, says Garland.
In the lawsuit against Google, prosecutors said Google pays Apple, Samsung and other smartphone makers billions of dollars each year to install Google as the default search engine on their devices. Through that, Google is able to secure access to user data, which helps the company maintain its position. Thanks to the monopoly position, the company is also able to increase the prices of advertisements without limits.
According to the prosecutors, Google’s actions mean that other competitors have not had a genuine opportunity or resources to challenge the search engine giant in the market.
In September, Google faces a lawsuit against its advertising technology. Meanwhile, in Europe, Google has been fined billions in monopoly cases.
US competition authorities have also brought charges against other technology giants. Among others, Meta, Amazon and Apple have been accused of abusing their monopoly position.
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