- Google has been found to have acted illegally in order to maintain a monopoly on internet search and advertising
- “No company, regardless of size, is exempt from the law”
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It’s a widely accepted assumption, but it’s actually not legal. We’re referring to Google’s dominant position in search and its role as the core entity in the internet hierarchy. While Google has built a service that has become synonymous with searching, recent legal action has confirmed our suspicions that Google has unlawfully suppressed competition to solidify its monopoly.
Enough is enough
The recent ruling could lead to significant changes within Google and create opportunities for competitors to challenge the company’s dominance in the online space. The court’s decision for “structural relief” suggests a potential breakup of the company to reduce its control over the internet.
The court’s decision calls for the breakup of the company, aiming to address Google’s monopolistic practices.
The case dates back to 2020 when the US Department of Justice sued Google for controlling around 90% of online searches. The court’s ruling for “structural relief” could reshape the digital landscape by breaking up Google to promote fair competition.
Apple’s $20 billion agreement
A key aspect of the case was Google’s substantial payments to secure its position as the default search engine on browsers and phones. Despite being rivals, Google pays Apple billions annually to maintain its status as the default search engine on iOS devices.
In 2022, Google paid Apple $20 billion to maintain its default search status on iOS devices, representing a significant portion of Apple’s operating profit.
“Google is a monopolist, and it has acted as one to maintain its monopoly.”
Judge Mehta
“Google is a monopolist, and it has acted as one to maintain its monopoly,” stated Judge Mehta, reflecting the court’s view on Google’s anti-competitive practices. The ruling marks a historic victory for consumers and reinforces the importance of upholding antitrust laws.
Google defended its position during the case, emphasizing its competitive advantage. However, the court ultimately found that Google’s payments for preferential treatment undermined fair competition.
What comes next?
Although Alphabet’s stock experienced a slight decline after the ruling, the long-term impact of potential Google breakup remains uncertain. One potential outcome could be a choice of search engines for users, similar to measures implemented in Europe. However, the implications of Google losing its dominant position could have significant repercussions for both Google and its competitors.
As the situation unfolds, we will continue to provide updates on the evolving landscape of the digital industry.
