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A federal judge has determined that Google operates its search engine as an illegal monopoly and plans to decide on the penalties by next summer, which may include breaking up the company.
On September 6, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia directed the Justice Department to submit a proposed remedy for penalizing Google by the end of the year. The federal Judge also scheduled an evidentiary hearing for March or April next year, which would inform the court’s decision on penalties expected by August 2025.
Google’s attorney, John Schmidtlein said the company needs a detailed proposal from prosecutors to enable it to prepare any counter-argument in the case.
Judge Amit P. Mehta Sets 2025 Timeline for Remedies to Google’s Search Monopoly.
It kicks off a new phase in an antitrust case that could reshape the tech giant and change competition on the internet.
— Arjuna Aqa (@arjunaaqa) September 7, 2024
If Judge Mehta’s timeline proceeds as planned, a decision on the penalties would come nearly five years after the Justice Department filed the lawsuit in 2020.
The case, U.S. et al v. Google, is a landmark antitrust trial that began under the Trump administration and continued into the Biden administration. It marks a significant milestone as one of the first major antitrust cases against a tech giant in recent years.
Judge Mehta ruled on August 5 that Alphabet, Google’s parent company, violated the Sherman Antitrust Act through practices designed to maintain its dominance in the search engine market.
Google Violated the Sherman Antitrust Act Through Business Practices
The Sherman Antitrust Act is a US law enacted in 1890 that prohibits monopolistic practices and restraints on trade that restrict competition in the marketplace. The law aims to prevent businesses from engaging in activities that unfairly limit competition or control prices, ensuring a competitive economic environment.
Prosecutors accuse Google of paying device manufacturers to make its search engine the default option on almost all smartphones sold in the United States, including Apple’s iPhone.
This practice allegedly helped Google secure and maintain its dominant market share (almost 90%), funneling business to its advertising platform and other services.
The Justice Department has not yet specified the severity of the proposed penalties, but the investigation’s findings have sparked discussions about major changes to Google’s business practices.
Colorado Attorney General Phil Weiser, a driving force behind the multi-state antitrust lawsuit against Google, recently revealed that his team was exploring two options.
They are considering either breaking up Google or banning the company from paying device manufacturers to pre-install its search engine. The goal is to work with prosecutors to develop a unified approach to addressing Google’s anti-competitive practices.
Yelp is suing Google for antitrust violations. Earlier this month, a federal judge found that Google had a monopoly on search engines. What does Google have to say about this very similar case? pic.twitter.com/cqSTJcjA0g
— Arleen Richards (@richardsarleen1) August 29, 2024
Furthermore, the tech company also faces additional antitrust challenges, including an ongoing investigation by the European Union and a recently filed lawsuit by the online review company Yelp.
