A U.S. federal judge has ruled against Google in an antitrust lawsuit, finding it guilty of illegally monopolizing the search engine market. Judge Amit Mehta stated that Google’s multibillion-dollar deals with Apple and other companies to make Google the default search engine on smartphones and web browsers essentially blocked competition. This ruling marks the first major antitrust decision against the tech giant in two decades.
Market Reaction and Potential Consequences
The market reacted swiftly to the ruling. Shares of Alphabet, Google’s parent company, fell 4.5 percent to $159.13, while Apple’s shares dropped 5.8 percent to $207.14. The judge plans to hold a separate hearing to determine actions against Google. Possible options include separating Alphabet’s search business from other products, such as Android or Chrome. This decision could result in the largest forced breakup of a U.S. company since AT&T in 1984.
We’ll keep you updated on the developments in this case as they unfold.
NIX Solutions notes that while Judge Mehta found Google guilty of monopolizing the search market, he stated that the company does not have a monopoly on general search advertising. The U.S. Justice Department has not yet commented on the court’s decision, and Google did not respond to Bloomberg’s request for comment.
This ruling could have significant implications for the tech industry and may reshape the landscape of online search and advertising. As the situation develops, we’ll continue to monitor and report on any new information or actions taken against Google.