Federal Judge Domination On August 5, a ruling was made that Google’s search business violates U.S. antitrust laws. Judge Admit Mehta of the U.S. District Court in Washington, DC, ruled that “Google is a monopoly and has acted as a monopoly to maintain its monopoly.”
Google has already said it will appeal the ruling, but the ruling will have lasting effects.
Sales contract
according to According to Judge Mehta, about 90% of search queries in 2020 came through Google. The ruling focuses on Google’s distribution agreements to reach users. The company pays billions of dollars to third-party providers, such as web browser software, mobile device makers and wireless carriers, to be the default search engine. Apple alone is receiving $20 billion to make Google the default search engine in Safari in 2022.
For Google, more users means more data and more advertising revenue. By this measure, Google’s advertising revenue has grown from $47 billion in 2014 to $146 billion in 2021.
Verdict
In 2020, the US Department of Justice filed two lawsuits against Google: one alleging that its distribution agreements violated the Sherman Antitrust Act, which prohibits practices that restrict commerce and competition, and the second alleging that Google Ad Manager restricts competition in advertising technology.
Judge Mehta, ruling in the first case, concluded that Google had indeed violated the Sherman Antitrust Act, stating:
- General search services and search advertising are different markets.
- Google has monopoly power in these markets.
- Google’s distribution agreements are exclusionary and anti-competitive.
- Google has not provided any legitimate pro-competitive justification for these agreements.
The court also concluded that Google charges “above-competitive” prices for general search text ads, which demonstrates the company’s monopoly power.
Mehta announced that no fines or sanctions would be imposed, pending Google’s appeal.
Advertiser
In the short term, there will likely be little change that will impact ad performance. Google will likely stop pursuing new distribution deals. Even if the ruling is upheld, it’s unclear when or if those contracts will end. For example, its contract with Apple runs until 2026.
Still, advertisers Consider your options There will be search providers that surpass Google, but Google will probably Most Popular(AI-powered search competition hasn’t eroded Google’s dominance, but From SparkToro.
Upcoming legislation could force platforms like Safari to give users more visibility into their preferred search engine. We’ve seen this scenario with regards to user privacy: websites must be transparent about how they use and collect data and allow users to opt out of tracking.
The ruling could foreshadow similar lawsuits. Second CaseThe lawsuit against Google Ad Manager was filed in September by the Federal Trade Commission. Amazon and Meta Involves anti-competitive behavior.
