Federal Judge Rules Google Search an Illegal Monopoly

David McCabe, reporting for The New York Times:

Google acted illegally to maintain a monopoly in online search, a federal judge ruled on Monday, a landmark decision that strikes at the power of tech giants in the modern internet era and that may fundamentally alter the way they do business.

Judge Amit P. Mehta of U.S. District Court for the District of Columbia said in a 277-page ruling that Google had abused a monopoly over the search business. The Justice Department and states had sued Google, accusing it of illegally cementing its dominance, in part, by paying other companies, like Apple and Samsung, billions of dollars a year to have Google automatically handle search queries on their smartphones and web browsers.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta said in his ruling. [...]

Monday’s ruling did not include remedies for Google’s behavior. Judge Mehta will now decide that, potentially forcing the company to change the way it runs or to sell off part of its business.

It’s worth a reminder that under U.S. antitrust law, having a monopoly is not in and of itself illegal. It’s just that monopolies must operate under different rules, and Mehta has ruled that Google broke (and continues now to break) those rules.

And you don’t have to be an expert to know that Google Search is a monopoly. By market share it’s possibly the biggest monopoly in all of computing today. Maybe it’s still Windows, but most estimates peg the Mac’s share of the U.S. PC market at about 15 percent. I wouldn’t be surprised if fewer than 10 percent of Americans even know there exist search engines other than Google, let alone use one as their default.

What the remedies should — or even could — be for Google here, I don’t know. Microsoft lost a similarly huge antitrust case in the U.S. in the 1990s and effectively escaped unscathed.

One possible outcome is that Apple winds up paying a bigger penalty, effectively, than Google. Let’s say the remedies include Google being banned from paying for traffic acquisition. Then Apple changes Safari from making Google the default search engine to prompting users with a choice for default search, and 90 percent of Safari users choose Google — the search engine they’ve been using since forever ago, and for many people the only one they even recognize by name. Now Google gets that search traffic for free and Apple gets bupkis.

See also: Techmeme’s roundup of coverage and commentary.

★ Monday, 5 August 2024