In a landmark ruling on 5 August 2024, a US judge found that Google has been illegally exploiting its dominance in the online search market. This decision could dramatically change how the internet works and potentially weaken one of the world's best-known companies.

Judge Amit Mehta of the US District Court in Washington, D.C. said that Google is a monopoly and has acted to keep its powerful position. The case, which began nearly four years ago, is the biggest antitrust showdown in the US in 25 years.

Key Points:

1. Google controls about 89% of the general search market, rising to 95% on mobile devices.

2. The company spends billions each year to be the default search engine on phones and other devices.

3. In 2021 alone, Google spent over $26 billion on these default agreements.

4. The judge said these deals make it hard for other search engines to compete.

Google plans to appeal the decision. Kent Walker, Google's president of global affairs, said the ruling recognises that Google offers the best search engine but unfairly concludes it shouldn't be allowed to make it easily available.

The US Department of Justice, which brought the case, sees this as a big win. Attorney General Merrick Garland said it shows that no company is above the law, no matter how large or influential.

What Happens Next?

The judge will now decide what changes Google must make or what penalties it should face. This could include:

• Stopping Google from paying to be the default search engine

• Breaking up parts of Google's business

• Changing how Google operates its search business

However, Google is likely to appeal, which could take up to five years to resolve.

Possible Effects:

1. On Google: The company might lose its biggest source of income if forced to split up its search business.

2. On other companies: Microsoft, which lost a similar case in the 1990s, could benefit. Apple might lose money if Google can't pay to be the default search engine on iPhones.

3. On users: We might see more choice in search engines on our devices.

Other Tech Giants Under Scrutiny

This case could set an example for other lawsuits against big tech companies:

• The US government is also suing Apple over how it makes it hard for people to switch from iPhones.

• There are cases against Facebook (now Meta) for eliminating early competitors.

• Amazon is being sued for how it treats sellers on its online marketplace.

Background and Wider Context

The case against Google started in 2020, during Donald Trump's presidency. It's part of a bigger effort by both Republicans and Democrats to control the power of large tech companies.

The current US government, under President Joe Biden, has been particularly keen to challenge big tech's dominance. Lina Khan, who leads the Federal Trade Commission, is known for her tough stance on tech giants.

Some experts compare this case to the famous antitrust case against Microsoft in the late 1990s. In that case, Microsoft was ordered to share some of its tech with other companies and had to have a group watch over its behaviour.

Google's Defence Google has argued that:

1. People use its search engine because it's the best, not because it's the only choice.

2. Users can easily change their default search engine if they want to.

3. The company keeps improving its search engine, which benefits users and advertisers.

The judge agreed that Google's search engine is high-quality but said this doesn't excuse its monopolistic behaviour.

Criticism of Google's Practices

The judge criticised how Google handles its internal communications. The company deletes internal chat messages after 24 hours unless an employee chooses to save them. The judge said this makes it hard for regulators and courts to investigate Google's actions.

Looking Ahead

This ruling is seen as a big step in the US government's efforts to control the power of tech giants. It might lead to significant changes in how we use the internet and our devices.

However, the case is far from over. Google will appeal, and it could be years before we see any major changes. In the meantime, the tech world and consumers will be watching closely to see how this unfolds and what it might mean for the future of online search and digital advertising.