September 17, 2024, 8:37 am | Read time: 3 minutes
A verdict has now been reached in a trial that caused a media sensation – and to the disadvantage of the giant corporation Google, which was sued. TECHBOOK explains what it’s all about and what the consequences could be.
After some back and forth, a court in the USA has now passed judgment. The case regarded Google and its market power. The US Department of Justice and a number of federal states sued Google and won. But what consequences does this have for Google and, above all, for users?
This is what the Google trial is about
The antitrust dispute dragged on in court for several years; it was the biggest trial of its kind since the case against Microsoft 25 years ago. But what exactly was it about?
Specifically, Google was accused of exploiting its market power to further establish its search engine. This approach would put the competition at an unlawful disadvantage. This has now been confirmed by Amit Mehta, the judge responsible in Washington, who described Google as a monopolist. The internet giant has, therefore, lost the important case.
A particular point of contention in court was the billions in payments that Google made to other companies, especially smartphone manufacturers, so that they would set the Google search engine as the standard for web browsers on their devices. Apple was cited as a major example. Although users can change this setting retrospectively, the hurdle is, of course, higher than if you simply stick with the default settings.
More lawsuits against big tech companies
The approximately 280-page ruling states that Google has a monopoly on the search engine market. However, the judge also noted that Google offered the best product on the market in this respect. Google also pointed this out during the trial; users would use the search engine anyway because it would provide the best results. The company also intends to appeal.
The verdict in the Google trial in the USA is somewhat reminiscent of the proceedings that have been or are still being conducted in the EU. Meta, for example, recently received a warning for its payment model. Apple has also already had to pay a fine for violating the Digital Markets Act (DMA) and maintaining its market power too strictly via its app store.
After the big tech companies have massively expanded their power in recent years, there now appear to be efforts in several places to keep competition alive. This is also shown by the fact that further lawsuits are planned before US federal courts. The current case against Google was filed under the Trump administration and then taken over by the Biden administration. The latter is also planning similar lawsuits against Apple, Amazon, and Meta.
Antitrust proceedings Google could lose Chrome browser
Attention: No termination! What does notice of termination mean for mobile phone contracts?
Amazon founder 5 things Jeff Bezos predicted back in 1999
What consequences the ruling could have
The exact consequences of the ruling in the Google lawsuit cannot yet be predicted in detail. The US Department of Justice has not yet formulated any clear demands on Google. What effective measures that go beyond a mere fine could even look like is controversial anyway.
However, it is conceivable that Google may no longer be set as the default search engine on devices in advance. This is already common practice in the EU due to the DMA. However, large companies such as Apple or Firefox, which implement the whole thing, are not part of the process. The ruling could, therefore, probably only prohibit Google itself from rewarding such measures on such a massive scale.
As Google has also announced that it will appeal, the process will likely drag on for several years anyway.