Google Loses Massive Antitrust Case

In a seismic decision that could shake up the internet and hobble one of the world's best-known companies, a judge ruled Monday that Google's ubiquitous search engine has been illegally exploiting its dominance to squash competition and stifle innovation. The highly anticipated decision issued by US District Judge Amit Mehta comes nearly a year after the start of a trial pitting the Justice Department against Google in the country's biggest antitrust showdown in a quarter century, the AP reports. After reviewing reams of evidence that included testimony from top executives at Google, Microsoft, and Apple during last year's 10-week trial, Mehta issued his potentially market-shifting decision three months after the two sides presented their closing arguments in early May.

• Major setback for Google. The decision represents a major setback for Google and its parent, Alphabet Inc., which had steadfastly argued that its popularity stemmed from consumers' overwhelming desire to use a search engine so good at what it does that it has become synonymous with looking things up online.

• Appeal is almost certain. Google will almost certainly appeal the decision in a process that may ultimately land in the US Supreme Court. For now, the decision vindicates antitrust regulators at the Justice Department, which filed its lawsuit nearly four years ago while Donald Trump was still president, and has been escalating its efforts to rein in Big Tech's power during President Biden's administration.
• Google depicted as bully. The case depicted Google as a technological bully that methodically has thwarted competition to protect a search engine that has become the centerpiece of a digital advertising machine that generated nearly $240 billion in revenue last year. Justice Department lawyers argued that Google's monopoly enabled it to charge advertisers artificially high prices while also enjoying the luxury of having to invest more time and money into improving the quality of its search engine—a lax approach that hurt consumers.

• Google's defense. Google ridiculed those allegations, noting that consumers have historically changed search engines when they become disillusioned with the results they were getting. For instance, Yahoo—now a minor player on the internet—was the most popular search engine during the 1990s before Google came along.
• Next steps. Mehta's conclusion that Google has been running an illegal monopoly sets up another legal phase to determine what sorts of changes or penalties should be imposed to reverse the damage done and restore a more competitive landscape. The potential outcome could result in a wide-ranging order requiring Google to dismantle some of the pillars of its internet empire or prevent it from shelling out more than $20 billion annually to ensure its search engine automatically answers queries on the iPhone and other internet-connected devices. It's also possible that the judge could conclude only modest changes are required to level the playing field.

(More Google stories.)