Google monopolised Search illegally, spent billions to suppress competition: US Judge
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A US Judge has ruled that Google created a monopoly in the search engine space by taking illegal measures. As per the ruling, the tech giant used its financial resources to dominate the market unfairly. The ruling is now being considered as a first major win for the authorities trying to take on the market dominance of Big Tech. The decision from the US Judge paves the way for another trial to find potential fixes that may also include breaking up Google's parent company Alphabet into smaller companies or changing the way it operates to make a level playing ground. "The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," US District Judge Amit Mehta, Washington, D.C., wrote.
How was Google able to create a monopoly
As noted by US Judge Amit Mehta, Google spent a lot of money, around $26.3 billion in 2021 alone, to make sure that its search engine is default on most smartphones and web browsers. By investing billions, Google ensured that most users are dependent on their search engine, making it almost impossible for competitors, especially smaller ones, to get a foothold in the market.
Although Google disagrees with the ruling and plans to appeal, the results of it can be seen on the company's stock prices. Google argues that its offers are great search services and the latest ruling restricts their business practices unfairly. It is worth noting that the tech giant makes tons of money from advertising and such major changes could affect its profits.
Why this case is important for you
If the measures suggested by the US Court go into action, it will reduce Google's dominance in the search engine space, making way for the competition. More players will likely lead to lower prices and better services.
In addition to this, the case is the first major antitrust ruling against a tech giant in a long time. It signals that US authorities are serious about taking action against big players who might be relying on unfair practices and abusing their market power.
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