Google has lost an antitrust lawsuit filed by the US Department of Justice, in addition to several states, in the United States District Court for the District of Columbia. The court ruled that Google violated Section 2 of the Sherman Act by maintaining a monopoly in general search services and text advertising through exclusive distribution agreements.
According to the court ruling, Google recognized the risk it faced if Apple Safari browser users switched to an alternative search engine, estimating it would cost Apple billions to develop and operate a global web search engine. Google paid Apple an estimated $20 billion in revenue share in 2022, nearly double from 2020 and equivalent to 17.5% of Apple’s operating profit that year.
While the court chose not to sanction Google for not preserving chat evidence, it was revealed that Google directed employees to avoid certain antitrust-related language in communication and instructed them on how to handle sensitive issues via email. The court document presented evidence that Google intended to harm competition through its contracting practices.
Attorney General Merrick Kanter applauded the court’s decision as a victory for the American people upholding antitrust laws. Assistant Attorney General Jonathan Garland described the ruling as holding Google accountable and paving the way for innovation and protecting access to information. Google faces scrutiny over its business practices in other regions, including Europe, where it has been fined for abusing its dominance as a search engine and distorting competition in the advertising technology industry.
Despite the setback, Alphabet, the parent company of Google, is likely to appeal the ruling, and changes to its business practices may take years to enforce. Google has also revised its plans for the Privacy Sandbox following feedback from various stakeholders, including regulators, publishers, web developers, and civil society, to encourage privacy-enhancing technologies.