In a landmark trial case, a federal judge ruled that Google violated antitrust law when it spent billions of dollars to have its search engine dominate the industry. The decision, issued after a 10-week bench trial, represents a significant victory for the effort to challenge the dominance of a few major tech companies.
In his final ruling, Judge Amit Mehta held that as a result of suppressing competition by paying billions of dollars to operators of web browsers and phone manufacturers to be their default search engine, Google has become a monopolist and “it has acted as one to maintain its monopoly.”
Judge Mehta emphasized that Google’s illegal practices has resulted in anticompetitive behavior. The tech giant’s exclusive deals with Apple and other large mobile companies that resulted in the preloading of Google’s search engine as the exclusive and default engine displays the company’s illegal practices. These contracts drove Google’s online advertising business as it transformed its search engine into the most convenient platform to access.
“This victory against Google is an historic win for the American people,” said Attorney General Merrick Garland. “No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.” “This landmark decision holds Google accountable. It paves the path for innovation for generations to come and protects access to information for all Americans,” said Assistant Attorney General Kanter. “This victory is a reflection on the tireless efforts of the dedicated public servants at the Antitrust Division and our state law enforcement partners whose work made today’s decision possible.”
In response to the final ruling as well as Attorney Garland’s statement Google’s head of global affairs Kent Walker released his own statement that that displays the company’s dissatisfaction with the ruling. “This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available,” he said in a written statement that quoted complimentary passages from Mehta’s decision. “As this process continues, we will remain focused on making products that people find helpful and easy to use.”
What Does This Mean For the Future of Tech
Since Judge Mehta has yet to impose any penalties since Google has yet to appeal, the implication of this ruling is not completely clear. According to many, the most likely penalty imposed on Google will be a court order to terminate its existing contracts with Apple and other mobile companies. Ultimately, this case paves the way for AI-powered search engines to enter the industry and take control of what Google has to relinquish.
This case also teaches a valuable lesson to big tech companies to be cautious when drafting a contract that entails a sense of exclusivity. “If you’ve got a dominant product, you’ve got to be very careful to make sure that your licensing and contract agreements are open, because making them exclusive can be dangerous,” said University of Pennsylvania Carey Law School antitrust scholar, Herbet Hovenkamp. No longer can companies form contracts that aim to transform a product into a default platform for all users.
Although this decision will play a significant role in Google’s future business practices, it will have an even larger role for the tech industry as a whole. For now on, companies will have to be very careful when engaging in business agreements with third parties to use its products or else they will face a similar result to Google. This case is only the start of big tech antitrust lawsuits as companies such as Apple, Amazon and Meta face their own respective antitrust allegations. 
Jacob Horowitz is a contributing editor at Compliance Chief 360°