Google Found Guilty of Antitrust Violation

A U.S. judge ruled that Google violated antitrust law, spending billions of dollars to create an illegal monopoly and become the world's default search engine.

It’s the first big win for federal authorities taking on Big Tech's market dominance.

Google controls about 90% of the online search market, and 95% on smartphones.

The ruling said it paid over $26 billion in 2021 alone to ensure that its search engine was the default on smartphones and browsers, and to keep its dominant market share.

Parent firm Alphabet said it plans to appeal the ruling. The legal wrangling could play out into next year, or even 2026.

The decision paves the way for a second trial to determine potential fixes, including a possible breakup of Alphabet.

That would change the landscape of the online advertising world that Google has dominated for years.

Now the ruling is also a green light to aggressive U.S. antitrust enforcers prosecuting Big Tech, a sector that has been under fire from across the political spectrum.

Shares of Alphabet fell 4.5% amid a broad decline in tech shares as the wider stock market plunged over fears of a recession.

Google’s dominance in the search market was evidence of its monopoly, the ruling found.

Google “enjoys an 89.2% share of the market for general search services, which increases to 94.9% on mobile devices”, the ruling said.

The decision represents a major setback for Google and its parent company, Alphabet, which had argued that its popularity stemmed from consumers’ overwhelming desire to use a search engine that has become synonymous with looking things up online.

Google’s search engine processes an estimated 8.5 billion queries every day worldwide, nearly double its daily volume from 12 years ago, according to a recent study by investment firm BOND.