In a major decision that could shake up the internet and hobble one of the world’s best-known companies, U.S. District Judge Amit Mehta has ruled that Google’s search engine has been illegally exploiting its dominance to stifle competition and stifle innovation.
The ruling vindicates antitrust regulators at the Justice Department who filed a lawsuit almost four years ago while Donald Trump was president, and the department has been escalating its efforts to rein in Big Tech’s power during President Joe Biden’s administration.
Driving the news: Google and its parent company Alphabet had argued that Google’s popularity stems from consumers’ overwhelming desire to use a search engine good at what it does, becoming synonymous with searching things up online.
- However, the judge concluded that Google has been running an illegal monopoly.
- The ruling sets up another legal phase to determine the penalties that should be imposed to reverse the damage done and restore a more competitive landscape, which could result in a wide-ranging order requiring Google to dismantle some of its internet empire or prevent it from shelling out more than $20 billion annually.
Zoom out: Microsoft, one of Google’s main rivals, could benefit significantly if there is a significant shakeup, possibly turning into a coup for Bing, Microsoft’s search engine.
- The decision could hurt Google at a critical pivot point that is tilting technology in the age of artificial intelligence and may affect the battle between both Microsoft and Google’s early leadership in AI.
What we’re watching: The ruling does not absolve Google of other legal threats it faces, both in the United States and abroad, including a federal trial scheduled to begin in Virginia in September over the Justice Department’s allegations that Google’s advertising technology constitutes an illegal monopoly.
