Google antitrust case explained: What's next?

Details about the antitrust case

On Aug. 5, 2024, a federal judge ruled that Google held an illegal monopoly on online search and advertising in a case brought by the U.S. Department of Justice (DOJ).

The case, which was filed by the DOJ in 2020 and joined by over 30 state attorneys general, raised concerns about Google's market dominance in the internet search market and alleged that Google was engaging in illegal practices to suppress competing search engines, such as Bing and DuckDuckGo. Specifically, Google established contracts with major companies -- including internet browsers and smartphone manufacturers such as Apple and Android -- to be the default search engine on these devices, which pushed out competitors and stopped them from gaining market share.

"Because Google's Search market is so dominant and it is inextricably tied to Google Chrome, Google Ad Network, Google Ads Hub, Google Analytics, and Google Tag Manager, they are demonstrating monopoly power when they cause harm to the market," according to Ted Sfikas, field chief technology officer at Amplitude, a digital analytics platform.

The ruling by Judge Amit Mehta agreed with the DOJ that Google acted as a monopolist in the internet search space by barring competitors, as well as created a feedback loop between the monopolization of internet search and increased ad revenue, allowing the company to hike up digital ad prices and dominate the market even more. Google "enjoys an 89.2% share of the market for general search services, which increases to 94.9% on mobile devices," according to the ruling.

According to the ruling, Google's behavior violated Section 2 of the Sherman Act, which bars businesses or individuals from monopolizing interstate trade or commerce, including attempting or conspiring to monopolize.

However, Google has announced it intends to appeal the ruling, alleging that it will restrict consumers from accessing their preferred search engine.

How this compares to other antitrust cases

The Supreme Court's ruling is a significant victory for antitrust enforcement and is one of the most impactful antitrust rulings for Big Tech in decades. The case shares similarities with Microsoft's antitrust case in 1999, which found that Microsoft was monopolizing the web app market by intertwining the Windows operating system with Internet Explorer. In that case, Microsoft settled, and the ruling imposed restrictions to prevent monopolization.

However, this isn't the only antitrust case that's currently active. Another suit against Google, filed by the Biden administration in 2023 related to the monopolization of the AdTech space, is set for September. Additionally, other Big Tech companies such as Amazon and Apple have ongoing antitrust cases.

However, Google's case differs from other antitrust cases because these statutes haven't been used against a search engine before. According to Baruch Labunski, CEO of Rank Secure, "It was amplified by the fact that Google, a private company, was also using its dominance to control the information that people see. In that respect, companies that were in their inner financial circle were given priority, and the news they supported was promoted while other news was censored."

How will this affect internet searches?

Much like Microsoft's case set a legal precedent for software companies, restrictions that might be imposed on Google could fundamentally change how consumers use search engines and the results they get from Google and search engines in general.

Here are a few ways that internet searches may change based on the results of Google's antitrust lawsuit.

Default engine changes

One of the main components of the suits is the exclusive multibillion-dollar deals to be the default search engine for device manufacturers, such as Apple and Samsung. If the outcome puts restrictions in place to bar these contracts, the result could be a change in default search options. This could significantly disrupt Google's search engine monopoly and pave the way for many other shifts in internet searches.

Additional competitors

Restrictions on Google's monopoly or divestment in operations could introduce new competition in the search engine market. "Numerous other search engines could absorb some of Google's market," according to Labunski. "It will deplete some of Google's financial resources and possibly allow for competition, especially in the corporate market."

Additional competitors can introduce a more diverse range of search options, including the possibility of more AI-powered search options, such as OpenAI's SearchGPT. Microsoft's search engine Bing has also been incorporating AI into its search. If Microsoft can gain a bigger market share, the adoption of AI into search engines might surge to revolutionize search engines.

More competitors might also drive innovation and creativity, shaking up the standards for internet search and introducing new features and, ultimately, better search results.

Digital advertising changes

Another key part of the case is Google's advertising practices, which secure the monopoly Google has over the market. If those practices are forced to change because of the ruling, it might cause a shift in digital advertising, including the types of ads consumers see and their relevancy.

Consumer choices

The emergence of new competitors and increased search engine options gives consumers the choice of what search engine they want to use, which can also lead to more informed decision-making from consumers.

An increase in consumer choices could also make internet search users more aware of the privacy policies of different engines and affect the efficacy of Google's ad practices.

What does this ruling mean for other Big Tech companies?

Regardless of the outcome, the ruling will have broad implications for other Big Tech companies such as Amazon and Meta, as well as more visibility and new precedence on other antitrust cases. Overall, these changes could improve transparency between consumers and companies and allow for more consumer choice.

"[The ruling] serves as a warning to other tech companies against unfair competition practices since it proves that they aren't invincible in court," said Labunski. "The big change will come about once the court stipulates what Google must do actionably to correct itself under the ruling."

What's next for Google

On Oct. 8, 2024, the DOJ made recommendations for its search engine practices. The structural remedies hint at a possible breakup as an antitrust resolution.

The filing said the remedies will "prevent and restrain recurrence of the same offense of illegal monopoly maintenance going forward." Some remedies mentioned include limiting default and preinstallation agreements with companies such as Apple.

The DOJ also said in the filing it was "considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features -- including emerging search access points and features, such as artificial intelligence -- over rivals or new entrants."

The remedies will address four categories including:

1. Search distribution and revenue sharing.
2. Generation and display of search results.
3. Advertising scale and monetization.
4. Accumulation and use of data.

More implications and changes could be coming depending on the results of Google's upcoming AdTech case. "I believe that Google's monopoly within the system of Google AdNetwork, Search, Ads Hub, and Analytics constitute a unique platform and unfair market advantage that no other competitor can replicate," said Sfikas. "I believe that the government will move to split those platforms up as separate entities, to decouple Search from the Ad Network."

Google faces second antitrust trial with DOJ

On Sept. 9, 2024, the DOJ’s second antitrust trial against Google began. This case argues that Google used its portfolio of ad tools to create a monopoly, leading to higher ad prices for customers. The DOJ will argue that Google locked in advertisers with its products and websites and made them work around this technology as a middleman to reach customers. Google took a large cut of these ad dollars from both sides.

In addition, the DOJ will also point out Google’s acquisitions to show it dominates all areas of digital advertising. These acquisitions include DoubleClick, Invite Media and AdMeld.

Alison Roller is a freelance writer with experience in tech, HR and marketing.