Google Loss Case: Google has suffered a setback which will have a big impact not only on this technology company but on crores of people. The world’s fourth largest tech company Google has faced defeat in the antitrust case going on in America. America’s Columbia District Judge Justice Amit P Mehta said in the landmark antitrust case that Google is a monopolist and has acted illegally in online search to maintain its monopoly. This is the first decision from a large list of cases against Big Tech Giant Google.
According to the 277 page judgement, Google misuses monopoly
In a 277-page decision, the District of Columbia judge said, “Google is a monopolist.” In simple terms, this means that Google has misused its monopoly on the search business. Justice Mehta said, “This decision recognizes that Google provides the best search engine but also concludes that we should not be allowed to provide it easily. As this process continues, we will focus on creating products that people find useful and easy to use.”
Why is this decision a setback for Google
This decision is a big blow for Google. It is feared that this decision can have a big impact on Google’s success, especially when the company spends heavily to compete in the race of artificial intelligence. Google is so effective as a search engine for online searches that its name has become a verb. Like people say – “Google it..”
What happened in the case against Google and when?
- The US Justice Department and states filed a lawsuit in 2020 over Google’s dominance in online search.
- For this, a total trial of 10 weeks was conducted last year i.e. in the year 2023.
- Justice Mehta’s decision on Monday, 5 August 2024, put an end to the US et al Vs Google case.
- Monday’s ruling did not include further remedies for Google.
- Justice Mehta will now decide whether the company will potentially be forced to change its business practices or sell part of its business.
Why did the US Justice Department sue Google
The US Justice Department and states had accused Google of illegally paying billions of dollars every year to companies such as Apple and Samsung so that Google could automatically handle search queries on its smartphones and web browsers. The Justice Department said that Google’s search engine performed about 90 percent of web searches. Google spends billions of dollars annually to become an automatic search engine on browsers like Apple’s Safari and Mozilla’s Firefox. Google earns billions of profits annually through the search engine. According to a report by ‘The New York Times’, Google paid about $18 billion to Apple for defaulting in 2021, but Google disputed this number.
Microsoft CEO Satya Nadella also testified
During the trial, Microsoft CEO Satya Nadella testified that its competitor’s dominance had created a “Google web” and that its relationship with Apple was “oligopolistic”. He said that if Google was not stopped, it was likely to become the leader in the race to develop artificial intelligence. He was concerned about this.
What did Google CEO Sundar Pichai say
Google’s Chief Executive Officer Sundar Pichai said in his testimony that Google has created a better service for consumers.
Justice Department satisfied with court’s decision
US Justice Department’s top antitrust official Jonathan Kanter said in a statement, “This historic decision holds Google accountable. It will open the way for innovation for generations to come and protects access to information for all Americans.” (Source – New York Times)
Google’s troubles are not over yet – hearing in another case next month
Google will appeal yesterday’s decision, which could eventually come to the US Supreme Court. According to the New York Times, Google’s president of global affairs Kent Walker said the company would appeal the decision. Another federal antitrust case is ongoing against Google, which is scheduled to be heard next month (September).
Why is this being considered a historic decision
The court’s decision on Google’s search dominance was the first antitrust ruling in the modern Internet era against a technology giant. It is a landmark decision that attacks the power of tech giants in the modern Internet era and could change the way they do business.
Facebook, Instagram and WhatsApp will also be affected!
The decision is likely to impact other government antitrust lawsuits against Google, Apple, Amazon and Meta, the owner of Facebook, Instagram and WhatsApp. Keep in mind that the last significant antitrust decision targeted Microsoft more than 20 years ago and this case was also very much discussed.
What is Monopoly after all?
The term monopoly is used to describe when an entire market or almost the entire market is owned by one entity. Monopoly means that a company or its product dominates a sector or industry.
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