Google faces a significant antitrust lawsuit due to its dominance in the search market.

A federal judge ruled on Monday that Google has breached US antitrust laws concerning its search operations, resulting in a significant legal setback for the technology company that could fundamentally alter how millions of Americans access information online and disrupt its long-standing market dominance.

In his opinion, US District Judge Amit Mehta stated, “After thoroughly evaluating the witness testimonies and evidence, the court arrives at the following conclusion: Google is a monopolist, and it has behaved as such to sustain its monopoly.” He further noted that this conduct constitutes a violation of Section 2 of the Sherman Act.

The ruling from the US District Court for the District of Columbia represents a remarkable condemnation of Google’s most established and critical business segment. The company has invested tens of billions of dollars in exclusive agreements to maintain its status as the primary search engine on smartphones and web browsers.

These agreements have enabled Google to effectively eliminate potential competitors, including Microsoft’s Bing and DuckDuckGo, as alleged by the US government in a landmark antitrust lawsuit initiated during the Trump administration.

Judge Mehta emphasized that this dominant position has resulted in anticompetitive practices that must be addressed. He specifically pointed out that Google’s exclusive arrangements with Apple and other significant entities within the mobile ecosystem were anticompetitive. Additionally, he remarked that Google has imposed elevated prices in search advertising, which reflect its monopolistic control over the search market.

Google and the Department of Justice did not provide an immediate response to a comment request. This particular case differs from another antitrust lawsuit filed by the Biden administration against Google in 2023 regarding the company's advertising technology sector. The latter case is anticipated to proceed to trial in early September.

However, the ruling on Monday signifies Google's second significant antitrust loss, following a federal jury's decision in December that Google maintains an unlawful monopoly through its exclusive app store. The court is currently considering potential solutions in that particular case.

Potential consequence

Mehta’s ruling is expected to set off a separate process to determine the penalties that Google will face. After this, the company is likely to file an appeal, meaning that any potential consequences may take months or even years to materialize. However, the decision could ultimately disrupt how Google provides its search engine to users, affecting its ability to make deals with device makers and online service providers that were central to the case.

Other potential remedies are also possible. For instance, the court could compel Google to introduce a "choice screen" to inform users about other available search engines, according to Vanderbilt University law professor Rebecca Allensworth.

The company is also expected to receive a financial penalty, although fines are not the primary method of enforcing antitrust law in the United States, as they are often insignificant for a large, highly profitable company like Google, she noted.

When the lawsuit was initially filed, US antitrust officials did not rule out the possibility of breaking up Google, warning that the company's conduct could jeopardize future innovation or the emergence of a Google successor.

The ruling could also serve as a precedent for other major tech antitrust cases currently in progress, such as those involving Apple and Amazon. Both companies have refuted the antitrust lawsuits against them, claiming that they are based on incorrect facts and law.

"There are many aspects of the government's arguments in its case against Google that are relevant to their other cases," Allensworth explained. "Issues such as 'zero price markets,' which are markets where users do not have to pay for each search... how the judge addresses these questions in this case will be closely scrutinized and will have an impact on those other cases, although it will not be legally binding."

The fate of artificial intelligence is at risk

Mehta’s 277-page opinion comes after a long trial last year where top executives from Google, as well as competitors and partners like Apple, Microsoft, and others, testified in person. A lot of the trial was held behind closed doors due to the sensitive business information involved in the deals that contributed to Google’s search dominance.

During the trial, some critics warned that Google’s search monopoly, fueled by a constant stream of user search queries, could allow it to quickly become a dominant force in artificial intelligence.

Microsoft CEO Satya Nadella, testifying, pointed out that the vast amount of search data provided to Google through its default agreements could help Google train its artificial intelligence models to be better than anyone else’s, potentially giving Google an unassailable advantage in AI. This could have far-reaching effects beyond traditional search and shape the future of the technology world.

If the court were to take away Google’s default search engine agreements on many devices, it could significantly impact the company’s core product at a crucial moment, according to Emarketer senior analyst Evelyn Mitchell-Wolf. She emphasized that Google’s ubiquity is its greatest strength, especially as competition grows among AI-powered search alternatives.