On Monday, August 5, 2024, U.S. District Judge Amit Mehta issued a long-anticipated decision in the case between Google and the U.S. Justice Department. The two sides presented closing arguments in May 2024. In his 277-page ruling, Mehta wrote, “Google is a monopolist, and it has acted as one to maintain its monopoly.”
The landmark case centered around Google’s dominance in the digital search market and has sent shockwaves through the digital marketing industry. The recent ruling raises questions about the future of online competition and the practices of major tech companies. Here’s what you need to know.
Why Did Google Get Sued?
The ten-week trial, which initially stemmed from a series of lawsuits and other actions initiated by the U.S. Justice Department, concluded in November 2023 and included extensive testimony from executives at Apple, Microsoft, and Google itself.
Among other things, the case centered around Google’s anti-competitive strategies to maintain its monopoly in search and advertising, particularly by paying for default status on devices and platforms.
These actions led to the company being accused of squashing its competition, effectively blocking rivals from accessing a significant portion of the market, as well as inhibiting innovation. But in response, the company simply claimed that it dominated the market because its products were merely better than other options out there.
Justice Department lawyers also accused Google of charging artificially high prices to advertisers. They alleged that it was only able to inflate prices due to its monopolistic foothold on the digital search market. These arguments are well-founded, as Google controls over 91% of the global search engine market.
Parties from both sides delivered their closing statements in May of 2024. However, Judge Mehta needed three months to review the extensive body of evidence and compose his 277-page ruling. Unfortunately for the world’s largest search engine (and its parent company, Alphabet Inc.), Judge Mehta disagreed with its arguments and found that the company engaged in blatant monopolistic activities that methodically thwarted its competition.
What Was Google Found Guilty Of?
Judge Mehta ruled that Google did the following:
Blocked Rivals
One of the most notable aspects of the case was the revelation of how Google systematically paid for default search engine status. The company paid Apple $18 billion in 2021 to secure itself as the default search engine on iOS devices and then spent an additional $20 billion in 2022 to maintain that privilege. The company also shares one-third of Safari’s search ad revenue with Apple.
Through these payments, Google blocked its rivals from half the mobile device market. Google
Google made itself the default search engine in multiple browsers, effectively preventing other search engines from gaining any kind of foothold in the market. By locking out competitors, Google was able to maintain its dominance, making it nearly impossible for other platforms to compete even if they were to see traffic despite Google’s default status.
Violated Antitrust Law
Google used its financial advantage to secure agreements with device manufacturers and browsers. These actions violated antitrust laws, which are designed to promote competition and prevent monopolies. The court found that the company’s actions in the search and advertising market were aimed at maintaining its monopoly as opposed to competing fairly based on the quality of its products and services.
Furthermore, the practice unfairly limited consumer choice. Consumers never chose the platform in these instances; Google made the choice for them by buying out default opportunities with major device and platform companies.
Potential Impact of the Ruling on the SEO Sector
Judge Mehta’s ruling could have far-reaching consequences for search engine optimization (SEO) and the digital marketing industry. Google’s dominance in search has long shaped how businesses approach online marketing. Many strategies are designed to cater to Google’s algorithms and policies.
If Google’s market share gets reduced, businesses may have to adapt to a more diverse search ecosystem. That kind of shift could impact advertising strategies and draw paid search traffic away from Google. For SEO professionals and digital marketers, it’s important to stay informed about the latest developments and ensure they are ready to adapt to a potentially changing landscape.
How the Ruling Could Influence Other Tech Cases
The decision against Google could set a precedent for other tech cases, particularly those involving antitrust issues, thus potentially marking the start of a larger movement to hold big tech accountable for its business practices. Companies like Amazon, Apple, and Facebook have already faced antitrust investigations, and the outcome of the Google case could influence how courts approach instances like these in the future.
Google Has Been Sued Before (More Than Once)
Though the trial itself lasted all of ten weeks in 2023, the Justice Department and Google’s conflict initially began back in 2020. It’s a multi-year case that only represents the latest in Google’s long line of allegations and lawsuits, though.
For instance, in December 2023, Google settled a $5 billion class-action lawsuit over allegations that it tracked consumers while they used Chrome’s Incognito mode. A few days prior to that, Google settled a $700 million class action lawsuit over allegations that it overcharged consumers for app subscriptions via the Google Play Store.
Even in June 2024, as the final statements in the case with the Justice Department were already made, Google narrowly avoided yet another major settlement. The company persuaded a federal judge to dismiss a class action claim focused on its misuse of copyrighted data to train its artificial intelligence model.
To put things simply, the suits keep piling up for the search engine titan, and they are showing no signs of slowing down.
How You Can Prepare for What’s Next
Recent Google rulings could have major repercussions for your digital marketing strategy and ability to reach consumers online. With that in mind, now is as good a time as any to reevaluate your competitive positioning and ensure you are doing everything possible to differentiate yourself from the competition. Dagmar Marketing can help with our customized digital marketing solutions. Contact us online or call us at 877-753-0050 to schedule a consultation.
Madison Stevens
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