TECHNOLOGY
In a landmark ruling today, a federal judge declared that Google has established an illegal monopoly by paying partners to make its search engine the default on smartphones and mobile browsers. Judge Amit Mehta's 277-page decision found that Google has violated Section 2 of the Sherman Act, affirming the Justice Department's 2020 antitrust lawsuit against the tech giant.
The lawsuit accused Google of locking up the search market through billion-dollar partnerships with device manufacturers like Apple and Samsung. Judge Mehta concluded that Google possesses "monopoly powers" in both the general search market and search advertising. He highlighted that Google's exclusive distribution agreements have anticompetitive effects, contributing to inflated advertising prices on its platform.
Despite the ruling, Judge Mehta did not provide any immediate remedies to address Google's monopolistic practices. Instead, he noted that the Justice Department and Google have agreed to separate the liability and remedies phases of the case. Google has announced plans to appeal the decision, with Kent Walker, Google's President for Global Affairs, arguing that the ruling misinterprets the company's ability to provide a high-quality search experience to users.
Critics of Google have welcomed the ruling as a significant step toward curbing the company's market dominance. The Open Markets Institute, a nonprofit organization focused on dismantling tech monopolies, expressed optimism, stating that regulators are finally holding Google accountable for its antitrust violations, which have allowed it to exert control over the dissemination of reliable news and information.
This ruling marks a pivotal moment in the ongoing battle against tech monopolies and raises important questions about the future of competition in the digital marketplace.
The lawsuit accused Google of locking up the search market through billion-dollar partnerships with device manufacturers like Apple and Samsung. Judge Mehta concluded that Google possesses "monopoly powers" in both the general search market and search advertising. He highlighted that Google's exclusive distribution agreements have anticompetitive effects, contributing to inflated advertising prices on its platform.
Despite the ruling, Judge Mehta did not provide any immediate remedies to address Google's monopolistic practices. Instead, he noted that the Justice Department and Google have agreed to separate the liability and remedies phases of the case. Google has announced plans to appeal the decision, with Kent Walker, Google's President for Global Affairs, arguing that the ruling misinterprets the company's ability to provide a high-quality search experience to users.
Critics of Google have welcomed the ruling as a significant step toward curbing the company's market dominance. The Open Markets Institute, a nonprofit organization focused on dismantling tech monopolies, expressed optimism, stating that regulators are finally holding Google accountable for its antitrust violations, which have allowed it to exert control over the dissemination of reliable news and information.
This ruling marks a pivotal moment in the ongoing battle against tech monopolies and raises important questions about the future of competition in the digital marketplace.
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