Google’s reign of search supremacy is over
Google’s monopoly in online search and search advertising has been ruled a violation of the Sherman Act. A major win for the DOJ.
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Well, well, well. Look who’s finally been called out for their blatant monopoly antics. A federal judge has ruled that Google is indeed a monopolist when it comes to online search and search advertising. Who could have possibly seen this coming?
The court found that Google has been violating the Sherman Act by maintaining its iron grip on the search market. Because, of course, they have. As Judge Amit Mehta so eloquently put it,
“After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly.”
This is a major win for the Department of Justice and several state attorneys general who have been battling Google’s dominance in the search market.
It’s about damn time someone took on Google’s lucrative contracts with Apple and other device manufacturers to be the default search engine. As Mehta noted,
“The prospect of losing tens of billions in guaranteed revenue from Google — which presently come at little to no cost to Apple — disincentivizes Apple from launching its own search engine when it otherwise has built the capacity to do so.”
Because who needs competition when you can just get paid?
The court’s decision underscores how Google’s monopoly has stifled competition and innovation in the search market. Despite having the technical expertise to create its own search engine, even a massive company like Apple has felt it can’t afford to jeopardize the steady stream of income it gets from Google.
This has allowed Google to maintain an astonishing 90% market share in general search, with Bing lagging far behind at less than 6%. As Mehta dryly observed:
“If there is genuine competition in the market for general search, it has not manifested in familiar ways, such as fluid market shares, lost business, or new entrants.”
Yeah, no kidding.
The court also found that Google’s monopoly has allowed it to inflate prices for search ads. Even as the quality of its search results has arguably declined, Google has been able to rake in higher revenues from advertisers thanks to its lack of meaningful competition.
This, in turn, has given Google even more ammunition to further entrench its position by paying out massive sums to be the default search engine across the web. Because what’s a little price-gouging between friends?
While this ruling is a significant victory for the DOJ, it’s just the opening salvo in what’s likely to be a long and complex legal battle. Google has already announced plans to appeal the decision because, of course, they will.
The company will undoubtedly fight tooth and nail to preserve its search empire because that’s what monopolists do.
The next phase of the case will focus on potential remedies, which could range from forcing Google to change its business practices to a more drastic break-up of its search and advertising divisions. Fingers crossed for the latter.
The repercussions of this ruling will be felt far beyond just Google. As Bloomberg notes, the decision could have wide-ranging implications for the broader tech industry and the ongoing antitrust battles being waged against other giants like Amazon and Meta.
It’s a potent reminder that even the most seemingly untouchable companies can face accountability when they abuse their market power. About damn time.
For consumers, the ruling offers a glimmer of hope that the search landscape could finally become more competitive.
As DuckDuckGo noted, there’s pent-up demand for alternative search engines that don’t prioritize profits over privacy and relevance.
With Google’s monopoly power finally being curbed, the door could be opening for new entrants to shake up the search status quo. Let’s hope they don’t turn out to be just as shitty.
Of course, the fight is far from over. Google will do everything in its power to delay, appeal, and undermine any efforts to rein in its dominance.
But for now, this ruling is a crucial step towards holding Big Tech accountable and fostering the innovation and competition that’s been missing from the search market for far too long.
As DOJ Attorney General Merrick Garland stated: “This victory against Google is a historic win for the American people. No company — no matter how large or how powerful — is above the law.”
Well, it’s about damn time someone reminded them of that.
What do you think about the court’s decision to label Google as a monopolist? Are you hopeful for a more competitive search market? Share your thoughts in the comments below, or join the conversation on our Twitter and Facebook pages
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