Federal court rules Google is an illegal monopoly

Photo: Outreach Pete

Monopoly power hurts consumers in so many ways every day. It’s good news that states and the federal government are bringing more antitrust actions.

A federal judge in Washington, D.C., ruled Monday that Google unlawfully leverages its dominance in the online search and related text advertising markets through exclusionary contracts, harming consumers and advertisers.



“Google undermines competition and squelches innovation to protect its profits,” Washington state Attorney General Bob Ferguson said in a statement.

The ruling from a federal judge affirms the evidence presented in lawsuits by the U.S. Department of Justice and a coalition of 38 attorneys general.

“Google wields monopoly power over online search,” Ferguson said. “Fair competition ensures a robust, healthy marketplace where the consumer is the priority. Google’s unlawful monopoly cripples competition and harms consumers.”

U.S. District Court Judge Amit P. Mehta for the District of Columbia said in his ruling that Google violated the Sherman Antitrust Act by maintaining a monopoly over its general search and text advertising businesses.

Nearly 90 percent of all internet searches in the United States run through Google’s search engine. No other competing search engine has more than 7 percent of the market.

Google annually provides billions of dollars in financial incentives to pre-install Google Search as the default or exclusive search program on devices ranging from computers and smart phones to voice-based home speakers and internet-connected vehicles, the lawsuits allege.

Google tracks and analyzes nearly every search and click by consumers and then leverages that user data to strengthen its position in the search-based advertising market.



In the last decade, Google’s revenue from search advertising has grown 300 percent. In 2019, search advertising accounted for $98 billion in revenue for Google. Losing searches and clicks — and the opportunity to collect valuable user data — means losing revenue.

“This victory against Google is an historic win for the American people,” U.S. Attorney General Merrick Garland said in a statement. “No company — no matter how large or influential — is above the law.



The judge will rule on “remedies” for the case in the coming months. Remedies could include prohibiting Google from making exclusive deals for search distribution and sharing its search data with competitors to splitting off Google’s Chrome browser or its Android mobile operating system.

Google plans to appeal.