Historic US Legal Victory Against Google: Major Blow to Big Tech Monopolies

Economists regard the recent ruling as the most significant US government victory against Big Tech's monopolistic power in decades. The 286-page decision by Judge Amit Mehta, following an antitrust case brought by the US Department of Justice against Google's parent company Alphabet, declares Google a monopolist that acted to maintain its dominance in internet search.

Experts like Yale economist Fiona Scott Morton highlighted the case's importance in the government's ongoing battle to curtail the growing market power of large tech companies. US Attorney General Merrick Garland called the ruling a historic win for the American public, emphasizing that no company, regardless of size or influence, is above the law.

The ruling could have far-reaching implications for the Big Tech ecosystem. A critical factor was the estimated $20 billion Google paid Apple in 2022 alone to direct traffic to its search engine. This arrangement was scrutinized heavily, with Judge Mehta dedicating 14 pages to the "internet services agreement" (ISA) between Google and Apple, concluding that the deal perpetuated a monopoly. Apple had briefly considered switching to Microsoft's Bing but chose to continue the profitable partnership with Google.

While it remains uncertain whether the judge will mandate changes to the Google-Apple deal, the ruling definitively establishes Google's monopolistic status. Future measures to promote competition will be determined in the coming months.