Federal judge rules Google violated antitrust law

A federal judge ruled that Google maintained an illegal monopoly in search and advertising markets, marking a significant victory for the Department of Justice.

Why it matters. This is the first major decision in a wave of tech monopoly cases brought by the U.S. government in recent years, potentially setting a precedent for future rulings against other tech giants.

Key details:

• Judge Amit Mehta found Google violated Section 2 of the Sherman Act, which prohibits monpolies
• The court focused on Google’s exclusive search deals with Android and Apple devices as key to its anticompetitive behaviour.
• Google’s monopoly in general search increased from about 80% in 2009 to 90% by 2020.
• The ruling focuses on Google’s liability, not remedies
• Decision comes after a 10-week trial last fall

Why we care. While immediate changes are unlikely, advertisers should start preparing for potential long-term impacts on their digital marketing strategies.

Between the lines. The case revealed Google pays Apple $20 billion annually for default search status on iPhones.

The big picture. This ruling could influence how century-old antitrust laws are applied to modern digital markets in pending cases against Amazon, Apple, and Meta.

What’s next:

• Remedies to address Google’s monopoly will be determined in future proceedings
• Google faces another DOJ trial over its ad tech business, starting September 9th

What they’re saying. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Mehta wrote in his decision.

The other side. Google plans to appeal the decision, in statement made on X, arguing that it offers the best search engine and shouldn’t be penalized for making it easily available.

The bottom line. While a major setback for Google, the full impact on its business practices remains to be seen as the case moves to the remedies phase.