Google, which is the primary promoter of the Android ecosystem, has lost a landmark antitrust case against the US Department of Justice. A federal judge in the US has ruled that the internet search giant has broken antitrust laws by paying billions of dollars to firms like Apple and Samsung for exclusive search deals, enabling it to maintain its monopoly in the internet search and advertising businesses.
Google broke antitrust laws, paid billions to Apple and Samsung to maintain its search monopoly
According to the ruling by federal judge Amit Mehta, Google broke the country's antitrust laws by striking exclusive deals with Apple and Samsung. The company paid billions of dollars to those smartphone makers to ensure that Google was the default search engine on their devices. Both brands collectively sell over 400 million smartphones each year, and being the default search engine on so many devices effectively helps Google maintain a monopoly in the internet search and online advertising segments.
During the trial, it was revealed that Google paid as much as $26 billion to Apple in 2021 alone to be the default internet search engine in the Safari web browser. That figure would have increased by 2024. Mehta ruled that Google can no longer make such exclusive deals. Brands can opt to choose Google, but the internet search giant can no longer pay billions to device makers like Samsung to make sure it stays the default search engine.
It remains to be seen what steps Google will be forced to take as a result of this ruling. The US Department of Justice didn't seek any penalties when it argued the case. Google might have to make sweeping changes to its business practices and even break up the company in several parts, such as the search engine and the advertising business.
It is also possible that the court will fine Google millions or billions of dollars. Google hasn't accepted the court's ruling and said that it will appeal and set up a legal battle against the ruling.
