Aug 7, 2024, 9:02 AM
Aug 5, 2024, 7:35 PM

US Judge Rules Against Google

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Highlights
  • A US federal judge has ruled Google's search monopoly to be illegal.
  • The decision is a major blow to Alphabet, Google's parent company.
  • The ruling could reshape how technology giants operate in the future.
Story

In a landmark ruling, U.S. District Judge Amit Mehta has declared Google a "ruthless monopolist" for its practices that allegedly stifle competition in the online search market. This decision follows a lawsuit filed by the U.S. Department of Justice in 2020, which accused Google of maintaining a monopoly by controlling approximately 90% of the search market. The ruling, which spans 277 pages, highlights Google's financial strategies, including billions paid to companies like Apple and Samsung to secure its position as the default search engine, thereby limiting opportunities for competitors. The implications of this ruling extend beyond Google, potentially affecting its partnerships, particularly with Apple, which earns around $20 billion annually from its arrangement with Google. Judge Mehta's decision could force Apple to reconsider its default search engine agreements, possibly requiring significant investment in developing its own search technology, a venture estimated to cost over $30 billion. The upcoming hearing on September 6 will further explore how Google may need to adjust its business practices in light of the ruling. Google's leadership, under CEO Sundar Pichai, now faces the challenge of navigating the legal landscape while also focusing on the rapid advancements in artificial intelligence, which could redefine the tech industry. The ruling is seen as a significant victory for U.S. Attorney General Merrick Garland and federal regulators, who are also pursuing antitrust actions against other major tech companies, including Meta and Amazon. As the case unfolds, the future of Google's business model and its dominance in the tech sector remains uncertain, with potential structural changes on the horizon that could reshape the competitive landscape of online services.

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