Google has been found to have an unlawful monopoly in the search engine industry, which is a big setback for the company in an antitrust lawsuit.
**Google’s Loss in Antitrust Case with the U.S.**
The United States Department of Justice filed a lawsuit against Google, accusing the company of violating the Sherman Antitrust Act. The lawsuit claimed that Google was unfairly hindering competition by making deals with companies like Apple, Samsung, and Mozilla to ensure that its search engine is the default option on various operating systems and browsers.
In a recent ruling, United States District Judge Amit Mehta focused on Google’s agreement with Apple as a key point in the antitrust case and ruled against Google.
During the trial, key figures like Microsoft CEO Satya Nadella, Apple executive Eddy Cue, Google CEO Sundar Pichai, and DuckDuckGo’s CEO Gabriel Weinberg gave testimonies. Nadella mentioned the challenges of convincing users to switch from the default search engine, which has contributed to Google’s dominant position. Microsoft’s attempts to have Bing as the default search engine on Apple devices were unsuccessful.
Former Google executive Sridhar Ramaswamy, now the cofounder of Neeva, provided crucial testimony that influenced the judge’s decision. Ramaswamy revealed Google’s significant payments to Original Equipment Manufacturers (OEMs) to maintain its default setting, thereby reinforcing its monopoly. Eddy Cue from Apple also mentioned that Microsoft was unable to pay to have Bing preloaded on Apple devices.
Judge Mehta stated, “After carefully reviewing witness testimonies and evidence, the court finds that Google is a monopolistic entity that has actively sought to maintain its monopoly.”
Google’s search popularity has grown from 80% in 2009 to 90% in 2020, while other search engines like Bing struggled with market shares of 6% or lower, indicating a lack of real competition. Google argued that the ruling confirms the quality of its services.
DOJ antitrust chief Jonathan Kanter praised the ruling for holding Google accountable. The appropriate remedy is yet to be determined, which could involve ending Google’s agreements with Apple and other OEMs. There is a possibility that the DoJ may suggest restructuring Alphabet Inc’s search business to separate it from Android or Chrome, similar to the 1994 AT&T breakup. Google plans to appeal the ruling, but experts are skeptical about a favorable outcome for the company.
Apple is expected to face significant losses with the termination of its profitable search deal with Google, which is estimated to be worth $18 billion.
**Implications for Firefox**
With Google being a major financial supporter of Mozilla, providing over $500 million, Firefox users are concerned about the impact of these developments. While Safari and Firefox offer some competition as non-Chromium browsers, Firefox’s relatively small user base could be severely affected by the end of the Google deal. Exploring partnerships with other search engines raises concerns about anti-competitive practices.
Mozilla is evaluating the implications of the court’s decision and looking for ways to navigate the situation while continuing to provide users with various search options in a competitive market, according to a statement to Fortune.
