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Google loses major antitrust case over search, declared a monopoly by judge

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Google loses major antitrust case over search, declared a monopoly by judge

As a cinephile who has seen countless David vs. Goliath stories unfold on the silver screen, I can’t help but feel a sense of deja vu as I read about this antitrust ruling against Google. The tech giant, in this case, is clearly playing the role of the dominating Goliath, while the federal regulators are our underdog heroes trying to bring balance back to the market.

On Monday, a federal judge determined that Google had broken antitrust regulations by unlawfully preserving its dominance in the search market.

As a moviegoer eagerly watching the scene unfold, I can’t help but feel a sense of triumph as the long-awaited verdict comes in. This decision undeniably signifies a major win for federal regulators who are striving to curb the dominance of tech giants. The reverberations of this move could potentially rock the entire tech industry. Notably, other big players such as Apple, Meta (Facebook), and Amazon are also grappling with antitrust lawsuits from the same regulatory body.

“Following thorough examination and balance of the testimonies and proof presented, Judge Amit Mehta determined in his ruling that Google exhibits characteristics of a monopoly and has taken actions to preserve its dominant market position.”

The ruling did not include a remedy for Google’s conduct.

In a released statement, Google’s Global Affairs President, Kent Walker, announced their intention to contest the decision made.

“He stated that this choice acknowledges Google as the top search engine, yet maintains that it should not be effortlessly accessible. Moving forward, our primary goal remains on creating user-friendly and beneficial products.”

It’s claimed that Google kept its dominance in web searches by striking deals with browser creators, mobile device makers, and telecom providers to automatically install their search engine as the default option on these devices.

According to the decision, by teaming up with Google, companies are entitled to a share of the ad income generated by Google when users perform searches.

Last year, 2021, I learned that a whopping $26.3 billion was distributed as part of Google’s revenue-sharing agreements with some key partners. These partners include tech giants like Apple and Mozilla, who develop browsers, and Android device manufacturers such as Samsung and Motorola. Not to mention, U.S. wireless carriers like AT&T and Verizon were also on this list. This fascinating piece of information comes from a recent ruling. As a movie buff, I can’t help but draw parallels between the blockbuster deals in the tech world and the epic plots unfolding on the silver screen!

The court decision declared that the cost in question was Google’s highest outlay for that particular year. Meanwhile, it was reported that Google raked in over $146 billion in ad revenue during the same year, as per the court decision.

According to the decree, these distribution agreements have compelled Google’s competitors to seek alternative methods for connecting with users.

The Google subsidiary located in Mountain View (part of Alphabet Inc.) has progressively taken over a significant portion of the web search market. In the year 2009, about 80% of U.S. online searches were processed by Google. By 2020, this percentage had risen to almost 90%, as reported in the ruling. Moreover, close to 95% of mobile search queries were handled by Google.

In simpler terms, according to the judgment, Microsoft’s search engine, Bing, accounted for only about 6% of the total web searches, making Google its nearest significant rival.

By 2020, the extensive control over the search market had attracted antitrust authorities’ attention, leading to the filing of two distinct legal actions by the U.S. Department of Justice and various state attorneys general against the tech colossus.

Throughout the unfolding of the court case, I had the opportunity to testify alongside numerous other individuals, many of whom held significant positions within the tech industry. The bench trial initiated in September 2023 and ran for a span of nine consecutive weeks. The final statements were presented in May.

The outcome’s implications for Google are still unpredictable as they intend to challenge the decision, and additional hearings on possible solutions are scheduled to take place.

Colin Kass, a litigation partner at Proskauer and co-leader of their antitrust team, stated that we are currently playing the game rather than having reached its conclusion.

If the decision holds, it might necessitate Google re-evaluating its partnerships with external firms regarding being the default search engine, as suggested by Jef Pearlman, a clinical professor of law and the director of the intellectual property and technology law clinic at the USC Gould School of Law.

“If it stands, this will limit their current approach,” he said.

In essence, due to its specific focus on the search engine market, the current ruling against Google may not significantly influence other ongoing federal antitrust cases in tech, as these cases involve different markets and therefore are unrelated to web searches according to legal analysts.

However, this situation might act as a cautionary tale for AI firms that are partnering with external businesses to employ their tech. These partnerships could potentially lead them to encounter predicaments comparable to Google’s, involving disputes over default settings in search engines.

Although the AI market is relatively new, it’s likely that they will consider this factor when drafting their agreements, Pearlman suggested.

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2024-08-06 01:01

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