A woman passes the logo from the web search engine provider Google during the digital society festival 're:publica,' at the Arena Berlin in Berlin, Germany June 9, 2022. (Photo: CNBC)
A federal judge ruled yesterday that Google violated antitrust laws by unfairly controlling (holding a monopoly on) online search and text advertising. This decision is part of the first and largest tech antitrust trial in over twenty years. It could change how modern technology giants conduct business in the modern internet era.
In 2020, the US Justice Department, along with more than 30 state attorneys general, sued Google. They claimed that Google paid over $10 billion each year to web browsers and phone makers to be the default search engine on their platforms. The judge found that Google paid more than $26 billion in 2021 alone to make these deals. The ruling also showed that Google controls nearly 90% of the market for general search services on desktop computers and 95% on mobile devices. In 2023, Google's advertising division made about $238 billion, which is three times more than in 2016.
It is not clear what penalties or restrictions Google will face to encourage competition. Google is expected to appeal the decision.
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