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Google illegally maintains monopoly over internet search, judge rules

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Google illegally maintains monopoly over internet search, judge rules
News

News

Google illegally maintains monopoly over internet search, judge rules

2024-08-06 07:38 Last Updated At:07:40

WASHINGTON (AP) — A judge on Monday ruled that Google's ubiquitous search engine has been illegally exploiting its dominance to squash competition and stifle innovation, a seismic decision that could shake up the internet and hobble one of the world's best-known companies.

The highly anticipated decision issued by U.S. District Judge Amit Mehta comes nearly a year after the start of a trial pitting the U.S. Justice Department against Google in the country's biggest antitrust showdown in a quarter century.

After reviewing reams of evidence that included testimony from top executives at Google, Microsoft and Apple during last year's 10-week trial, Mehta issued his potentially market-shifting decision three months after the two sides presented their closing arguments in early May.

“After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," Mehta wrote in his 277-page ruling. He said Google’s dominance in the search market is evidence of its monopoly.

Google “enjoys an 89.2% share of the market for general search services, which increases to 94.9% on mobile devices,” the ruling said.

It represents a major setback for Google and its parent, Alphabet Inc., which had steadfastly argued that its popularity stemmed from consumers' overwhelming desire to use a search engine so good at what it does that it has become synonymous with looking things up online. Google's search engine processes an estimated 8.5 billion queries per day worldwide, nearly doubling its daily volume from 12 years ago, according to a recent study released by the investment firm BOND.

Kent Walker, Google’s president of global affairs, said the company intends to appeal Mehta’s findings.

“This decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” Walker said.

For now, the decision vindicates antitrust regulators at the Justice Department, which filed its lawsuit nearly four years ago while Donald Trump was still president, and has been escalating it efforts to rein in Big Tech’s power during President Joe Biden’s administration.

“This victory against Google is an historic win for the American people,” said Attorney General Merrick Garland. “No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”

The case depicted Google as a technological bully that methodically has thwarted competition to protect a search engine that has become the centerpiece of a digital advertising machine that generated nearly $240 billion in revenue last year. Justice Department lawyers argued that Google's monopoly enabled it to charge advertisers artificially high prices while also enjoying the luxury of not having to invest more time and money into improving the quality of its search engine — a lax approach that hurt consumers.

Mehta’s ruling focused on the billions of dollars Google spends every year to install its search engine as the default option on new cellphones and tech gadgets. In 2021 alone, Google spent more than $26 billion to lock in those default agreements, Mehta said in his ruling.

Google ridiculed those allegations, noting that consumers have historically changed search engines when they become disillusioned with the results they were getting. For instance, Yahoo was the most popular search engine during the 1990s before Google came along.

Mehta said the evidence at trial showed the importance of the default settings. He noted that Microsoft's Bing search engine has 80% share of the search market on the Microsoft Edge browser. The judge said that shows other search engines can be successful if Google is not locked in as the predetermined default option.

Still, Mehta credited the quality of Google's product as an important part of its dominance, as well, saying flatly that "Google is widely recognized as the best (general search engine) available in the United States.”

The Consumer Choice Center, a lobbying group that has fought other attempts to rein in businesses, decried Mehta’s decision as a step in the wrong direction. “The United States is drifting toward the anti-tech posture of the European Union, a part of the world that makes almost nothing and penalizes successful American companies for their popularity,” said Yael Ossowski, the center’s deputy director.

Mehta's conclusion that Google has been running an illegal monopoly sets up another legal phase to determine what sorts of changes or penalties should be imposed to reverse the damage done and restore a more competitive landscape. He scheduled a Sept. 6 hearing to begin setting the stage for the next phase.

The potential outcome could result in a wide-ranging order requiring Google to dismantle some of the pillars of its internet empire, or preventing it from paying to ensure its search engine automatically answers queries on the iPhone and other devices. Or, the judge could conclude only modest changes are required to level the playing field.

“Google’s loss in its search antitrust trial could be a huge deal — depending on the remedy,” said Emarketer senior analyst Evelyn Mitchell-Wolf.

Regardless, she added, a drawn-out appeals process will delay any immediate effects for both consumers and advertisers.

The appeals process could take as long as five years, predicted George Hay, a law professor at Cornell University who was the chief economist for the Justice Department’s antitrust division for most of the 1970s. That lengthy process will enable Google to fend off the likelihood of Mehta banning default search agreements, Hay said, but it probably won’t shield the company from class-action lawsuits citing the judge’s findings that advertisers were gouged with monopolistic pricing.

If there is a significant shakeup, it could turn out to be a coup for Microsoft, whose own power was undermined during the late 1990s when the Justice Department targeted the software maker in an antitrust lawsuit accusing it of abusing the dominance of its Windows operating system on personal computers to lock out competition.

That Microsoft case mirrored the one brought against Google in several ways and now the result could also echo similarly. Just as Microsoft's bruising antitrust battle created distractions and obstacles that opened up more opportunities for Google after its 1998 inception, the decision against Google could be a boon for Microsoft, which already has a market value of more than $3 trillion. At one time, Alphabet was worth more than Microsoft, but now trails its rival, with a market value of about $2 trillion.

If Mehta decides to limit or ban Google’s default search deals, it could squeeze Apple’s profits, too. Although parts of his decision were redacted to protect confidential business information, Mehta noted that Google paid Apple an estimated $20 billion in 2022, doubling from 2020. The judge also noted Apple has periodically considered building its own search technology, but backed off that after a 2018 analysis estimated the company would lose more than $12 billion in revenue during the first five years after a break-up with Google.

Google’s payments have helped Apple’s steadily growing services division, which generated $85 billion in revenue during the company’s last fiscal year. Apple didn’t immediately respond to a request for comment.

The Justice Department’s antitrust division has recently taken on some of the biggest companies in the world. It sued Apple in March and in May announced a sweeping lawsuit against Ticketmaster and its owner, Live Nation Entertainment. Antitrust enforcers have also opened investigations into the roles Microsoft, Nvidia and OpenAI have played in the artificial intelligence boom.

The Biden administration has won some big cases, including blocking mergers of some of the world’s biggest publishers as well as JetBlue Airways and Spirit Airlines. It’s also had some notable setbacks, including in the sugar and healthcare industries.

Google faces several other legal threats both in the U.S. and abroad. In September, a federal trial is scheduled to begin in Virginia over the Justice Department’s allegations that Google’s advertising technology constitutes an illegal monopoly.

——

Liedtke reported from San Ramon, California. Associated Press writers Alanna Durkin Richer and Barbara Ortutay contributed to this report.

FILE - Various Google logos are displayed on a Google search, Monday, Sept. 11, 2023, in New York. U.S. District Judge Amit Mehta ruled Monday, Aug. 5, 2024, that Google's ubiquitous search engine has been illegally exploiting its dominance to squash competition and stifle innovation in a seismic decision that could shake up the internet and hobble one of the world's best-known companies. (AP Photo/Richard Drew, File)

FILE - Various Google logos are displayed on a Google search, Monday, Sept. 11, 2023, in New York. U.S. District Judge Amit Mehta ruled Monday, Aug. 5, 2024, that Google's ubiquitous search engine has been illegally exploiting its dominance to squash competition and stifle innovation in a seismic decision that could shake up the internet and hobble one of the world's best-known companies. (AP Photo/Richard Drew, File)

The presidential campaign is moving forward after another apparent attempt on Donald Trump 's life. Trump was safe after the incident in Florida and praised the Secret Service for protecting him but didn't shy away from blaming his opponents. The Republican nominee claimed without evidence that President Joe Biden and Vice President Kamala Harris ' comment that he is a threat to democracy had inspired the attempt on Sunday.

The man suspected in the incident, Ryan Wesley Routh, camped outside the golf course in West Palm Beach with food and a rifle for nearly 12 hours, according to court documents filed Monday. Additional and more serious charges are possible as the investigation continues and prosecutors seek an indictment from a grand jury.

Trump is expected to travel to Michigan while Harris will speak at a Black journalists forum in Pennsylvania.

Here is the Latest:

Voto Latino registered more people in the days immediately after President Joe Biden announced he would not be the Democratic presidential candidate than the organization registered for the entire month of July in previous presidential elections.

Chief Program and Research Officer Ameer Patel said the organization registered more than 50,000 people from July 21 until the end of the month. By comparison, the nonprofit advocacy group registered 2,252 people in July 2016 and 25,156 in July 2020.

Two of the states with the most activity were Texas and Florida, Patel said.

Issues the organization is watching include voter purges, said founder Maria Teresa Kumar, who added that dropping people from voting rolls in smaller communities could have large impacts. “This was not on our radar,” she said.

More than 6 in 10 Latino voters supported Biden in 2020, according to AP VoteCast, and 35% supported former President Donald Trump.

However, a July poll from the Associated Press-NORC Center for Public Affairs Research found that only about 4 in 10 Latinos said they were somewhat or very optimistic about the future of the Democratic Party, and about one-quarter said the same about the Republican Party.

Vice President Kamala Harris says she was “briefed immediately after” Sunday’s apparent assassination attempt against former President Donald Trump and that she is grateful “he’s OK.”

In an interview recorded on Monday with a Spanish-language radio host Chiquibaby, Harris echoed her past sentiments about the attack, condemning “violence of any kind.”

“We have to have civil dialogue, and be able to talk through our differences,” Harris said. “And violence has no place.”

The interview was airing Tuesday on a show that is syndicated on 100-plus Spanish-language radio stations.

The vice president also talked about her mother, the late Shyamala Gopalan, who was born in India, being an immigrant to the U.S. She blamed Trump for helping to derail a bipartisan border security plan in Congress and detailed her previously announced plans to use tax incentives to encourage first-time home purchases and combat grocery “price gouging” to help tame inflation.

Hours after an apparent attempt on Donald Trump’s life over the weekend, Elon Musk took to his social platform X to post a thinking emoji and a comment that “no one is even trying to assassinate” the Democratic president and vice president.

Amid anti-Muslim riots in the U.K., which were ginned up by a false rumor, Musk declared that “civil war is inevitable” in the country.

And when an anonymous X user distorted data to claim a surge in sketchy voter registrations in three U.S. states, Musk amplified the false post and called it “extremely concerning.”

All three posts sparked quick backlash from public officials who called Musk’s words irresponsible and misleading. As his words amass millions of views and thousands of shares, they also illustrate the ability of one of the world’s most influential people to spread fear, hate and misinformation during fraught political moments around the world.

▶ Read more here.

The election director in Cobb County, an Atlanta suburb where votes will be fiercely contested in this year’s presidential race, recently organized a five-hour training session. The focus wasn’t solely on the nuts and bolts of running this year’s election. Instead, it brought together election staff and law enforcement to strategize on how to keep workers safe and the process of voting and ballot-counting secure.

Having a local sheriff’s deputy at early voting locations and panic buttons that connect poll managers to a local 911 dispatcher are among the added security steps the office is taking this year.

Tate Fall, Cobb County’s election director, said she was motivated to act after hearing one of her poll workers describe being confronted during the state’s presidential primary in March by an agitated voter who the worker noticed was carrying a gun. The situation ended peacefully, but the poll worker was shaken.

▶ Read more about what officials are doing across the country

Florida law enforcement will launch a state-level criminal probe of the apparent assassination attempt on former President Donald Trump, Gov. Ron DeSantis said Tuesday.

DeSantis told reporters that the “suspect is believed to (backslash)have committed state law violations.” DeSantis’ announcement comes a day after Ryan Routh was charged with federal firearms crimes.

Routh did not fire any shots, never had Trump in his line of sight and sped away after an agent who spotted him shot in his direction, officials said. He was arrested in a neighboring county.

Tuesday is National Voter Registration Day and Democratic presidential nominee Kamala Harris and her running mate, Minnesota Gov. Tim Walz, are kicking off a week of action to encourage young voters in battleground states to sign up to vote in the Nov. 5 election.

Walz has events on Tuesday in Macon, Georgia, and Atlanta, followed by a rally in Asheville, North Carolina, while his wife, Gwen, appears in Las Vegas.

Pennsylvania Gov. Josh Shapiro and actor Jane Fonda are among a group of high-profile Harris supporters who are set to participate in the registration drive.

More than 130 voter registration events will be held on college campuses — at basketball tournaments, football games and more — in the handful of states where Harris and Walz and the Republican presidential ticket of former President Donald Trump and his running mate, Ohio Sen. JD Vance, are focusing their campaigns, the Harris-Walz campaign said.

The campaign will also have a presence at historically Black colleges and universities and Hispanic-serving institutions, including setting up kiosks to assist students with registration.

As he participated in an event on his X social media platform, Trump gave a shoutout to Elon Musk, saying the tech billionaire “endorsed me for president so strongly.”

Trump also called Musk his “friend,” commending his efforts on space travel in particular.

Musk deleted a post on X in which he said “no one is even trying to assassinate” Biden and Harris in the wake of the apparent assassination attempt on Trump.

Early Monday, after taking down the post about the apparent Trump assassination, Musk wrote on the platform: “Well, one lesson I’ve learned is that just because I say something to a group and they laugh doesn’t mean it’s going to be all that hilarious as a post on X.”

Musk, who has nearly 200 million followers on the social media site he bought for $44 billion in 2022, has increasingly embraced conservative ideologies in recent years and endorsed Trump for president.

Trump says the apparent attempt on his life was a “much better result” than when he was shot in July because no others were wounded or killed.

“That was some crazy day, and yesterday you had another one with a different result, actually much better result,” Trump said.

The host noted that some of Trump’s sons were in the room for the interview.

He and his friends playing golf “heard shots, being fired in the air, and I guess probably four or five.”

Trump said they got into carts “and we moved along pretty good.”

“I would have loved to have sank that last putt,” Trump said, of not being able to finish the round of golf.

Trump said an agent had seen a gun barrel “and started shooting in the bushes ... and ran toward the target.”

Trump also noted that a civilian woman in the area drove her vehicle to the back of Routh’s vehicle and took pictures of the license plate, which she then gave to authorities, who were able to track the suspect down.

Trump is participating in his first speaking appearance since the apparent assassination attempt on Sunday.

The former president is taking part in an X Space about the launch of World Liberty Financial, a crypto platform controlled by his sons Donald Jr. and Eric.

From his Mar-a-Lago home in Florida, Trump commended the Secret Service for doing an “excellent job.”

Farokh, the event’s host, began by applauding Trump for not canceling his appearance.

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene at the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene at the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Law enforcement officials work at the scene of the Trump International Golf Club in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Department of Law Enforcement Commissioner Mark Glass speaks during a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Department of Law Enforcement Commissioner Mark Glass speaks during a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis walks from the podium after a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis walks from the podium after a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis speaks during a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis speaks during a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis delivers remarks and answers questions at a news conference Monday, Sept. 16, 2024, in Orlando, Fla. (AP Photo/John Raoux)

Florida Gov. Ron DeSantis delivers remarks and answers questions at a news conference Monday, Sept. 16, 2024, in Orlando, Fla. (AP Photo/John Raoux)

Florida Gov. Ron DeSantis arrives for a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Florida Gov. Ron DeSantis arrives for a news conference in the aftermath of the apparent assassination attempt of Republican presidential nominee and former President Donald Trump Tuesday, Sept. 17, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)

Jestin Nevarez, of Lake Worth, Fla., adjusts flags flying from his car as he shows support for Republican presidential nominee and former President Donald Trump outside of Trump's Mar-a-Lago estate, a day after an apparent assassination attempt, in Palm Beach, Fla., Monday, Sept. 16, 2024. (AP Photo/Rebecca Blackwell)

Jestin Nevarez, of Lake Worth, Fla., adjusts flags flying from his car as he shows support for Republican presidential nominee and former President Donald Trump outside of Trump's Mar-a-Lago estate, a day after an apparent assassination attempt, in Palm Beach, Fla., Monday, Sept. 16, 2024. (AP Photo/Rebecca Blackwell)

Ryan Wesley Routh takes part in a rally in central Kyiv, Ukraine, Saturday, April 30, 2022. (AP Photo/Efrem Lukatsky)

Ryan Wesley Routh takes part in a rally in central Kyiv, Ukraine, Saturday, April 30, 2022. (AP Photo/Efrem Lukatsky)

In this image taken from police body camera video and released by the Martin County, Fla., Sheriff’s Office, law enforcement officers prepare to arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

In this image taken from police body camera video and released by the Martin County, Fla., Sheriff’s Office, law enforcement officers prepare to arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

In this imaged released by the Martin County, Fla., Sheriff’s Office, law enforcement officers arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

In this imaged released by the Martin County, Fla., Sheriff’s Office, law enforcement officers arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

In this imaged released by the Martin County, Fla., Sheriff’s Office, law enforcement officers arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

In this imaged released by the Martin County, Fla., Sheriff’s Office, law enforcement officers arrest Ryan Routh, the man suspected in the apparent assassination attempt of Donald Trump, Sunday, Sept. 15, 2024. (Martin County Sheriff’s Office via AP)

A Coast Guard boat patrols the Lake Worth Lagoon in front of the Mar-a-Lago estate of Republican presidential nominee and former President Donald Trump, one day after an apparent assassination attempt, in Palm Beach, Fla., Monday, Sept. 16, 2024. (AP Photo/Rebecca Blackwell)

A Coast Guard boat patrols the Lake Worth Lagoon in front of the Mar-a-Lago estate of Republican presidential nominee and former President Donald Trump, one day after an apparent assassination attempt, in Palm Beach, Fla., Monday, Sept. 16, 2024. (AP Photo/Rebecca Blackwell)

President Joe Biden, left, holds up the arm of Democratic presidential nominee Vice President Kamala Harris, right, while on stage at the Congressional Black Caucus Foundation's Phoenix Awards Dinner in Washington, Saturday, Sept. 14, 2024. (AP Photo/Mark Schiefelbein)

President Joe Biden, left, holds up the arm of Democratic presidential nominee Vice President Kamala Harris, right, while on stage at the Congressional Black Caucus Foundation's Phoenix Awards Dinner in Washington, Saturday, Sept. 14, 2024. (AP Photo/Mark Schiefelbein)

Republican presidential nominee former President Donald Trump speaks at the Las Vegas Police Protective Association during a campaign stop, Saturday, Sept.14, 2024, in Las Vegas. (AP Photo/Alex Brandon)

Republican presidential nominee former President Donald Trump speaks at the Las Vegas Police Protective Association during a campaign stop, Saturday, Sept.14, 2024, in Las Vegas. (AP Photo/Alex Brandon)

Election 2024 Latest: Trump and Harris resume campaigning after apparent assassination attempt

Election 2024 Latest: Trump and Harris resume campaigning after apparent assassination attempt

Election 2024 Latest: Trump and Harris resume campaigning after apparent assassination attempt

Election 2024 Latest: Trump and Harris resume campaigning after apparent assassination attempt

Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP Photo/Alex Brandon)

Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP Photo/Alex Brandon)

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