Google, $GOOGL, loses DOJ antitrust suit, with judge finding that it violated antitrust law

On Monday, a federal judge ruled that Google has breached U.S. antitrust laws with its search business, delivering a major court loss that could alter how millions of Americans access online information and challenge Google's long-standing dominance.

US District Judge Amit Mehta declared in his opinion, “After carefully reviewing the testimony and evidence, the court concludes that Google is a monopolist, and it has behaved as one to maintain its monopoly. It has violated Section 2 of the Sherman Act.”

The ruling by the US District Court for the District of Columbia is a severe critique of Google's primary business. The company has invested billions in exclusive agreements to cement its position as the default search engine on smartphones and web browsers.

According to the US government, these agreements have enabled Google to exclude competitors like Microsoft’s Bing and DuckDuckGo, as outlined in an antitrust lawsuit filed during the Trump administration.

Judge Mehta noted that this dominant position has resulted in anticompetitive practices that need to be addressed. Specifically, he criticized Google’s exclusive deals with Apple and other major players in the mobile ecosystem as anticompetitive and pointed out that Google's high prices in search advertising reflect its monopoly power.

The longstanding contracts have made Google the most accessible and efficient platform for users seeking information, fueling its expansive online advertising business.

Although the court did not find Google to have a monopoly in search advertising, this decision represents a significant moment in a series of U.S. government-led antitrust cases targeting Big Tech. This case is being viewed as the most significant tech antitrust case since the U.S. government's confrontation with Microsoft at the turn of the millennium.

Attorney General Merrick Garland commented, “This victory against Google is an historic win for the American people. No company — no matter how large or influential — is above the law.”

Google has not yet responded to a request for comment. This case is separate from another antitrust suit filed by the Biden administration in 2023 concerning Google’s advertising technology. That case is expected to go to trial in early September.

Monday’s ruling marks Google's second major antitrust defeat, following a December verdict in California where a federal jury found Google to have an illegal monopoly with its proprietary app store. The court in that case is still considering possible remedies.