The recent ruling by a US court has officially recognized Google's monopoly over internet search, highlighting the significant legal and competitive implications for the tech giant. While monopolies are legal in the US, the court found that Google employs unfair practices to maintain its dominance.
Central to the case were multi-million dollar deals that ensured Google’s search engine is set as the default on devices, such as Apple's iPhone. Although users can switch to other search engines, many stick with the default, reinforcing Google's market power.
This ruling could have drastic consequences for Google, as the US Department of Justice is considering breaking up the company. Legal experts note that while a breakup is unlikely, individual measures could restrict Google's ability to secure exclusive contracts, potentially reshaping the competitive landscape.
Google's power stems from its vast user data, allowing it to target advertisements effectively. In the previous year alone, the company generated approximately $480 billion from its search engine. This interconnectedness with platforms like Android and Chrome further solidifies its influence.
The current antitrust movements in the US signal a renewed focus on regulating tech giants. Experts believe that while a breakup may not happen, targeted actions could restore competition in the market.
Google argues that any restrictions could lead to unforeseen negative consequences for users and the economy, claiming that limiting their contracts could hinder access to information. The ongoing case against Google is expected to take years before reaching a final decision from the Supreme Court.