Google found guilty of maintaining illegal search engine monopoly

August 7, 2024 Robert Abruzzese, Courthouse Editor

Attorney General Letitia James, who co-led a bipartisan coalition of 38 attorneys general in a lawsuit against Google for maintaining an illegal monopoly over online search engines. Photo: Bebeto Matthews/AP

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The U.S. District Court for the District of Columbia ruled on Monday that Google violated antitrust laws by maintaining an illegal monopoly over online search engines. The court explained that the tech giant breached Section 2 of the Sherman Act, which prohibits monopolistic practices that harm competition and consumer choice.

The lawsuit, initiated in 2020, argued that Google used exclusionary contracts with companies such as Apple and Samsung to ensure its search engine remained the default on the majority of devices.

These contracts effectively stifled competition, as rival search engines were unable to compete for default placement on popular smartphones and browsers. The court found that Google’s distribution agreements were exclusive and had significant anticompetitive effects, allowing the company to maintain its dominant market position.

Judge Amit Mehta, who presided over the case, noted that Google controlled approximately 90% of the online search market and 95% of searches on smartphones. Google paid an estimated $26.3 billion in 2021 alone to secure its default status on various devices, underscoring the lengths it went to maintain its market dominance.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta concluded.

The ruling paves the way for a trial to determine potential remedies, which could include the breakup of Google’s parent company, Alphabet. This phase of the legal process, along with potential appeals, could extend the case for several more years.

New York Attorney General Letitia James played a crucial role in this legal battle. Leading a bipartisan coalition of 38 attorneys general, James co-filed the lawsuit alongside the U.S. Department of Justice.

“This decision is a major victory in our efforts to ensure all companies, no matter how powerful or influential, are held accountable when they harm others,” James said. “For too long, Google has used its power to limit consumer choice in search, paying billions to ensure its competitors had no path to succeed and profiting enormously from its monopoly. As attorney general, I will not allow any business or corporation to take advantage of New Yorkers and exploit their position to grow their influence.”

The lawsuit accused Google of engaging in multiple forms of anticompetitive conduct. This included exclusionary agreements that restricted access to competing search engines, discrimination against specialized search sites like Expedia and Yelp, and unfair advantages within its own search engine marketing tools. These practices hindered competitive threats, limiting consumer choice and innovation while fortifying Google’s monopoly.