An American judge has ruled that Google violates U.S. trade laws by operating its search engine as an illegal monopoly.
The ruling accuses Google of paying smartphone makers to ensure that Google’s search engine is set as the default system on new devices. The U.S. Justice Department brought the antitrust case against Google’s parent company, Alphabet.
U.S. District Judge Amit Mehta said his decision took into account all evidence and statements presented during the trial, which ended in May. When the first part of the trial ended, it was up to Mehta to decide whether any of Google’s operations were illegal.
Mehta wrote in his ruling, “Google is a monopolist, and it has acted as one to maintain its monopoly.” Technology experts have estimated Google enjoys control of about 90 percent of the online search market and about 95 percent of smartphones.
A recent study by the California-based investment company BOND found that Google’s search engine processes an estimated 8.5 billion requests per day worldwide. That result was nearly double the number of daily search requests recorded in 2012. Google’s online advertising business helps fuel the majority of Alphabet’s $307 billion in yearly revenue.
The ruling could open the door for a second trial for the court to establish ways for Google to fix its operations to obey current laws. Some experts say one possible fix could be for Google’s current business structure to be broken up. Such changes could greatly reshape the current systems for online advertising.
Alphabet criticized the court’s ruling and said it plans to appeal. “This decision recognizes that Google offers the best search engine,” the company said in a statement. It added, however, that the ruling does not permit the company “to make it easily available.
U.S. Attorney General Merrick Garland called the decision “a historic win for the American people.” He noted, “no company, no matter how large or influential” should remain above the law.
White House press secretary Karine Jean-Pierre called the decision a “pro-competition ruling” and “a victory for the American people.” She said she believes all people “deserve an internet that is free, fair, and open for competition.”
In explaining his ruling, Mehta noted Google had paid $26.3 billion in 2021 alone to make sure its search engine was included as the default system on smartphones and browsers.
Such payments, the judge wrote, have permitted Google to keep its strong market share over worldwide internet search. Keeping the default position represents a huge business advantage for Google over its competitors, Mehta added.
The judge noted that under the current system, it would be nearly impossible for any other company to secure the same kind of default agreement with smartphone makers. Such a deal would require a company willing “to pay partners upwards of billions of dollars in revenue sharing,” Mehta said.
Discussions in court about how Google’s operations should change are set to begin on September 6 in Washington D.C.
The ruling is the first major decision in a series of cases brought against big technology companies in recent years, including Google, Apple, Meta and Amazon. Those cases involve antitrust, privacy and other issues.
I’m Bryan Lynn.
Bryan Lynn wrote this story for VOA Learning English, based on reports from The Associated Press, Reuters and Agence France-Presse.
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Words in This Story
monopoly – n. complete control of the entire supply of goods or of a service in a certain area or market
default – n. what exists or usually happens if no changes are made
antitrust – adj. related to efforts to prevent companies from working together to unfairly control prices or create a monopoly
maintain – v. keep something going
revenue – n. income a government or company regularly receives
deserve – v. to earn or be given something because of things you do or qualities you have
dominant – adj. more important or notable than anything else of the same kind
advantage – n. a condition that provides a greater chance of success