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Tuesday, May 20, 2025

Alphabet Faces Antitrust Setbacks as Federal Judges Rule Against Google

Federal judges have ruled against Alphabet's subsidiary Google in two antitrust cases, alleging illegal monopolies in online search and adtech software, with potential remedial measures to be imposed
The Justice Department initially sued Google in 2020, accusing the company of operating an illegal monopoly in online search by entering into exclusionary agreements that require Google to be set as the preset default search engine on billions of mobile devices and computers worldwide.

For example, Google paid Apple $20 billion in 2022 to maintain its status as the default search engine in the Safari browser, and also pays Samsung an undisclosed amount for similar privileges.

U.S. District Judge Amit Mehta ruled in August 2024 that Google had engaged in illegal practices to preserve its monopoly in the internet search market.

Both parties have proposed remedies, including prohibiting or limiting Google's ability to pay for default search placement and potentially forcing the company to sell its Chrome browser and Android operating system.

In a separate lawsuit filed in 2023, the Justice Department accused Google of operating an illegal monopoly in adtech software, providing products such as Google Ad Manager, AdMob, and AdSense for publishers, and Google Ads and Google Marketing Platform for advertisers.

The company also provides real-time bidding technology, called AdExchange, and sells its own inventory from properties like Google Search and YouTube, competing directly with publishers that use its sell-side tools.

District Judge Mehta plans to rule on remedies in August 2025, but Google has stated it will appeal an unfavorable decision, potentially prolonging the legal battle for years.
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