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Google Monopoly Ruling Under Appeal
4 Feb
Summary
- States and Justice Department appeal Google's September monopoly ruling.
- Google dominates search market with 90% share via lucrative deals.
- Potential remedies like selling Chrome are back on the table.
A significant legal challenge is emerging as states and the Justice Department appeal a September ruling that allowed Google to maintain its monopoly status without severe repercussions. This appeal offers a renewed chance to scrutinize the tech giant's market dominance.
In August 2024, District Judge Amit P. Mehta declared Google a monopolist, finding that the company illegally secured its stranglehold on the search engine market. Google commands 90% of this market, largely through substantial agreements, such as $20 billion to Apple and $8 billion to Samsung, ensuring Google remains the default search option on many devices.
The initial ruling's remedies were notably mild, focusing on data sharing with competitors and limiting the exclusivity of its paid deals, rather than more impactful measures like forcing the sale of its Chrome browser or banning its pay-to-play practices.
The US Court of Appeals for the D.C. Circuit is expected to take approximately a year to issue a decision. This appeal process theoretically reopens the possibility of harsher remedies, including the divestiture of Chrome or a ban on search engine payola deals, though Alphabet Inc. could pursue further appeals.
