Google illegally monopolized search and search advertising markets especially by paying $20 billion annually for default search status on iPhones.
A federal judge ruled that Google maintained an illegal monopoly in search and advertising markets, marking a significant victory for the Department of Justice. 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. Among other facts established, Google pays Apple $ 20 billion annually for default search status on iPhones.
“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Amit Mehta wrote in his decision.
Key details. Here are the main points:
- Judge Mehta found Google violated Section 2 of the Sherman Act, which prohibits monopolies.
- The court focused on Google’s exclusive search deals with Android and Apple devices as key to its anticompetitive behavior.
- The ruling focuses on Google’s liability, not remedies.
- Decision comes after a 10-week trial last fall.
Why we care. This is doubtless the beginning of a long story rather than the end of one. It will take some time before the implications for digital advertising are clear.
What’s next. Even before we get to appeals:
- Remedies to address Google’s monopoly will be determined in future proceedings.
- Google faces another DOJ trial over its adtech business, starting September 9.
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