Judge rules Google is a search and advertising monopoly

Posted:
in General Discussion edited August 5

Google violated antitrust law in the United States, a federal judge has ruled, with Google ruled by the court to have monopolized advertising and search.

Close-up of a tablet screen showing the Google app on an app store with a stylus pen lying on top.
Google pays Apple billions to be the default search in Safari



The U.S. Department of Justice antitrust lawsuit against Alphabet, the parent company of Google, has hit an important development. According to Judge Amit Metha and after a ten-week trial, Google has been ruled to be in breach of Section 2 of the Sherman Act.

"Google is a monopolist, and it has acted as one to maintain its monopoly," the ruling states.

The ruling means the court agrees with the DOJ's accusation of Google acting as an illegal monopoly in the search market as well as in online advertising. However, the ruling only determines Google's liability, and not any fines or other restitution.

This is not the only DOJ lawsuit Google faces in 2024. Starting September 9th, it will be facing another trial, covering the advertising technology side of its empire.

In a comment on Monday evening, Kent Walker, Google's President of Global Affairs, chimed in on the ruling.

This decision recognizes that Google offers the best search engine, but concludes that we shouldn't be allowed to make it easily available. We appreciate the Court's finding that Google is 'the industry's highest quality search engine, which has earned Google the trust of hundreds of millions of daily users,' that Google 'has long been the best search engine, particularly on mobile devices,' 'has continued to innovate in search' and that 'Apple and Mozilla occasionally assess Google's search quality relative to its rivals and find Google's to be superior.'

Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal. As this process continues, we will remain focused on making products that people find helpful and easy to use.

A massive ruling



The lawsuit from the DOJ argued that Google maintained a monopoly by paying billions of dollars to firms, so it was the most prominent or first choice for consumers.

Apple was the recipient of some of the payments, with the iPhone maker handed $20 billion from Google in 2022. The payment was to maintain its default search engine status.

As part of proceedings, a trio of Apple executives were subpoenaed for testimony, which Apple failed to quash. SVP of Services Eddy Cue, SVP of Machine Learning and AI Strategy John Giannandrea, and VP of Corporate Development Adrian Perica were all called upon to give evidence.

The $20 million figure was actually disclosed by Eddy Cue during the trial, and came to light following an unsealing of testimonies.

During the trial, it was also revealed that Microsoft tried to make Bing the default search engine for Safari, by offering Apple 90% of its advertising revenue. Microsoft also offered to sell Bing to Apple in 2020.

A possible financial hole



The regular billion-dollar payments from Google to Apple may be lucrative for the latter, but it may not necessarily continue. In July, Google was reportedly keen to lessen its dependence on Apple for search traffic and revenue.

Apple's payment from Google represented a 36% cut of Google's ad revenue from searches performed through Safari on iPhone.

Following the DOJ's win in the lawsuit, this now means the annual payment itself could be at risk. With the potential for Judge Mehta to order for Google to be broken up, it's even more probable that the gravy train will come to an abrupt stop.

Update August 5, 6:08 PM ET: Updated with a quote from Google responding to the ruling.



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Comments

  • Reply 1 of 23
    MesonMeson Posts: 13member
    2 down 1 to go.
  • Reply 2 of 23
    gatorguygatorguy Posts: 24,526member
    Kind of accurate. The search agreements were ruled to be monopolistic. But the court also found that general search advertising is not a market, and so there can be no monopoly control. 
    edited August 5 dewmebeowulfschmidt
  • Reply 3 of 23
    anonymouseanonymouse Posts: 6,940member
    gatorguy said:
    But the court also found that general search advertising is not a market ...
    Seriously?! I mean, Seriously!? That's just crazy talk.
    Alex_Vwatto_cobra
  • Reply 4 of 23
    tmaytmay Posts: 6,452member
    gatorguy said:
    Kind of accurate. The search agreements were ruled to be monopolistic. But the court also found that general search advertising is not a market, and so there can be no monopoly control. 
    ...what they said...

    https://www.cnn.com/2024/08/05/business/google-loses-antitrust-lawsuit-doj/index.html

    While the court did not find that Google has a monopoly in search ads, the broader strokes of the opinion represent the first major decision in a string of US-government led competition lawsuits targeting Big Tech. This case in particular has been described as the biggest tech antitrust case since the US government’s antitrust showdown with Microsoft at the turn of the millennium.

    watto_cobra
  • Reply 5 of 23
    Nikon8Nikon8 Posts: 50member
    Take meta down next. 
    watto_cobraAlex_V
  • Reply 6 of 23
    ssfe11ssfe11 Posts: 73member
    Well after about 3 years of appeals etc we will get a final ruling or a settlement and by that time AI will have rendered the case antiquated. 
    danoxwatto_cobra
  • Reply 7 of 23
    gatorguygatorguy Posts: 24,526member
    tmay said:
    gatorguy said:
    Kind of accurate. The search agreements were ruled to be monopolistic. But the court also found that general search advertising is not a market, and so there can be no monopoly control. 
    ...what they said...

    https://www.cnn.com/2024/08/05/business/google-loses-antitrust-lawsuit-doj/index.html

    While the court did not find that Google has a monopoly in search ads, the broader strokes of the opinion represent the first major decision in a string of US-government led competition lawsuits targeting Big Tech. This case in particular has been described as the biggest tech antitrust case since the US government’s antitrust showdown with Microsoft at the turn of the millennium.

    Yeah, I know. That's what my post was premised on, with the explanation why included.
  • Reply 8 of 23
    blastdoorblastdoor Posts: 3,519member
    With 90 percent of search, Google is an actual monopolist. Apple has nothing like that kind of share of any sensibly defined market. It’s ludicrous that governments are treating Apple as a monopolist 
    williamlondonwatto_cobraAlex_V
  • Reply 9 of 23
    nubusnubus Posts: 560member
    This could remove 60% of the profit from Services, the only part of Apple delivering any growth compared to 2022. And it shows that DOJ is able to win antitrust cases. Google is going to take a beating but so is Apple.

    Tim Cook and Eddy Cue did the price-fixing deal on iBooks to avoid competition. Cue quoted for a "I will do it again" and he did. What a mess.  
    williamlondonmuthuk_vanalingamCrossPlatformFrogger
  • Reply 10 of 23
    danoxdanox Posts: 3,213member
    blastdoor said:
    With 90 percent of search, Google is an actual monopolist. Apple has nothing like that kind of share of any sensibly defined market. It’s ludicrous that governments are treating Apple as a monopolist 

    Google search maybe in trouble with the coming of AI and AI agents more than a court case, it's bad luck having both seemly come at once.
    watto_cobra
  • Reply 11 of 23
    The Google board of directors need to replace the CEO with this guy:

    https://www.youtube.com/watch?v=vGn3nydV6sU
    watto_cobra
  • Reply 12 of 23
    nubus said:
    This could remove 60% of the profit from Services, the only part of Apple delivering any growth compared to 2022.
    How do you figure?
    watto_cobra
  • Reply 13 of 23
    jdwjdw Posts: 1,405member
    Just as I thought, I arrive here in the comments and see a lot of mindlessness taking place.  "Oh, it's Google.  Google isn't Apple.  Google is bad.  Go DOJ!"  Then we see these same folks comment under a different article about the DOJ and Apple trashing the DOJ and hoping Apple will pull through. 

    MAKES. ZERO. SENSE.

    Democrats on the Left want more DOJ anti-trust action.  Its current Biden Admin policy.  Millions of Americans with 401Ks and investments in big tech, and yet that party doesn't care less. They are going after the big and successful to cater to the demands of their base.  It really doesn't help anybody and only stands to hurt America's home-grown success stories and all those who invest their hard earned dollars in them.

    If you're going to defend Apple from the DOJ anti-trust suit, you sure as darned well better defend Google too.

    And if you want the DOJ to take down Apple too, in light of the fact you are commenting in a forum named AppleInsider, you're either in the wrong place or you're here to troll.
    mike1
  • Reply 14 of 23
    blastdoorblastdoor Posts: 3,519member
    jdw said:
    Just as I thought, I arrive here in the comments and see a lot of mindlessness taking place.  "Oh, it's Google.  Google isn't Apple.  Google is bad.  Go DOJ!"  Then we see these same folks comment under a different article about the DOJ and Apple trashing the DOJ and hoping Apple will pull through. 

    MAKES. ZERO. SENSE.

    Democrats on the Left want more DOJ anti-trust action.  Its current Biden Admin policy.  Millions of Americans with 401Ks and investments in big tech, and yet that party doesn't care less. They are going after the big and successful to cater to the demands of their base.  It really doesn't help anybody and only stands to hurt America's home-grown success stories and all those who invest their hard earned dollars in them.

    If you're going to defend Apple from the DOJ anti-trust suit, you sure as darned well better defend Google too.

    And if you want the DOJ to take down Apple too, in light of the fact you are commenting in a forum named AppleInsider, you're either in the wrong place or you're here to troll.
    The reason I defend apple is that apple isn’t a monopolist.

    the reason I don’t defend google is that google is a monopolist. 

    What part of that can’t you understand?
    watto_cobratmayAlex_Vwilliamlondon
  • Reply 15 of 23
    blastdoor said:
    jdw said:
    Just as I thought, I arrive here in the comments and see a lot of mindlessness taking place.  "Oh, it's Google.  Google isn't Apple.  Google is bad.  Go DOJ!"  Then we see these same folks comment under a different article about the DOJ and Apple trashing the DOJ and hoping Apple will pull through. 

    MAKES. ZERO. SENSE.

    Democrats on the Left want more DOJ anti-trust action.  Its current Biden Admin policy.  Millions of Americans with 401Ks and investments in big tech, and yet that party doesn't care less. They are going after the big and successful to cater to the demands of their base.  It really doesn't help anybody and only stands to hurt America's home-grown success stories and all those who invest their hard earned dollars in them.

    If you're going to defend Apple from the DOJ anti-trust suit, you sure as darned well better defend Google too.

    And if you want the DOJ to take down Apple too, in light of the fact you are commenting in a forum named AppleInsider, you're either in the wrong place or you're here to troll.
    The reason I defend apple is that apple isn’t a monopolist.

    the reason I don’t defend google is that google is a monopolist. 

    What part of that can’t you understand?
    What part of  “it could happen to Apple too?” do you not understand?

    Judges can and will do as they please regardless of what you think “the law” is. The Extreme Court taught us that on July 1st.
    jdwmike1
  • Reply 16 of 23
    jimh2jimh2 Posts: 653member
    We know two things: One: ruling is going to be appealed so it will be years before anything happens if at all. Two: people are happy with Google search and expect it. The only people who care are the are the outliers And windows users stuck with Bing as a default. 
    williamlondon
  • Reply 17 of 23
    blastdoorblastdoor Posts: 3,519member
    blastdoor said:
    jdw said:
    Just as I thought, I arrive here in the comments and see a lot of mindlessness taking place.  "Oh, it's Google.  Google isn't Apple.  Google is bad.  Go DOJ!"  Then we see these same folks comment under a different article about the DOJ and Apple trashing the DOJ and hoping Apple will pull through. 

    MAKES. ZERO. SENSE.

    Democrats on the Left want more DOJ anti-trust action.  Its current Biden Admin policy.  Millions of Americans with 401Ks and investments in big tech, and yet that party doesn't care less. They are going after the big and successful to cater to the demands of their base.  It really doesn't help anybody and only stands to hurt America's home-grown success stories and all those who invest their hard earned dollars in them.

    If you're going to defend Apple from the DOJ anti-trust suit, you sure as darned well better defend Google too.

    And if you want the DOJ to take down Apple too, in light of the fact you are commenting in a forum named AppleInsider, you're either in the wrong place or you're here to troll.
    The reason I defend apple is that apple isn’t a monopolist.

    the reason I don’t defend google is that google is a monopolist. 

    What part of that can’t you understand?
    What part of  “it could happen to Apple too?” do you not understand?

    Judges can and will do as they please regardless of what you think “the law” is. The Extreme Court taught us that on July 1st.
    Judges and courts ignoring the law is totally orthogonal to the issue at hand. 

    And saying that the law should not be enforced against the guilty because a corrupt court might one day enforce it against the innocent is an argument that only benefits the guilty. Which is why DJT makes that kind of argument all the time.
    williamlondonroundaboutnow
  • Reply 18 of 23
    sbdudesbdude Posts: 282member
    Who knew this discussion would devolve so quickly?
  • Reply 19 of 23
    dee_deedee_dee Posts: 127member
    jimh2 said:
    We know two things: One: ruling is going to be appealed so it will be years before anything happens if at all. Two: people are happy with Google search and expect it. The only people who care are the are the outliers And windows users stuck with Bing as a default. 
    I would challenge people are happy with Google search, since research has shown it’s only gotten worse over the past decade.  It’s going to be interesting what Apple does if Google isn’t allowed to pay to be the default on the iPhone. 
  • Reply 20 of 23
    22july201322july2013 Posts: 3,676member
    Which underlying search engine is being used when I ask Siri a question like "What is the population of the US?" I solve roughly 50% of my questions by asking Siri.
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