Google loses main anti-trust law case due to its search supremacy

(MENAFN) In a landmark decision with profound implications for the tech industry, a federal judge ruled on Monday that Google's search engine has unlawfully exploited its dominant market position to suppress competition and hinder innovation. The ruling, delivered by District Judge Amit Mehta, follows a high-profile trial that began nearly a year ago, marking one of the most significant antitrust cases in the United States in the past 25 years.

Judge Mehta's decision, issued after a thorough review of evidence that included testimonies from top executives of major tech giants like Google, Microsoft, and Apple over a 10-week trial period last year, comes three months after closing arguments were presented in May. The verdict represents a significant setback for Google and its parent company, Alphabet, which had contended that its search engine's popularity was solely due to its superior quality.

Google's search engine processes an estimated 8.5 billion queries daily worldwide, a figure nearly double what it handled 12 years ago, underscoring its pervasive influence in the digital realm, according to data from the investment firm Bond. The ruling is expected to prompt an appeal from Google, a process that could ultimately elevate the case to the United States Supreme Court.

The decision vindicates the efforts of antitrust regulators at the Justice Department, who initiated the lawsuit nearly four years ago during the administration of former President Donald Trump. The Biden administration has since intensified scrutiny of Big Tech companies, reflecting growing concerns over their market power and impact on competition.

Throughout the trial, the Justice Department portrayed Google as a corporate bully that systematically thwarted competitors to safeguard its dominant search engine, which serves as the linchpin of its lucrative digital advertising business. In 2023 alone, Google's digital advertising operations generated close to USD240 billion in revenue, illustrating the immense financial stakes involved.

The fallout from this ruling is expected to reshape the landscape of internet regulation and corporate competition, potentially leading to broader implications for other major tech firms under similar scrutiny. As Google prepares its appeal, the tech industry and regulatory bodies alike await further developments that could redefine the boundaries of market dominance and competition in the digital age.

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