Google's antitrust defeat: A boon for Microsoft Bing?
In a landmark decision, US District Court Judge Amit P. Mehta ruled that tech behemoth Google acted unlawfully to preserve its monopoly in the online search market. The ruling could potentially reshape Google's business practices and even alter the framework of the internet, if upheld. Mehta stated that Google exploited its monopoly power by paying companies like Apple to make its search engine the default option on their devices and web browsers.
Google's monopolistic practices under scrutiny
Mehta concluded that Google is a 'monopolist' and has acted as such to maintain its monopoly, thereby violating Section 2 of the Sherman Act. This law prohibits any person or business from monopolizing any part of trade or commerce. In 2021, Google spent $26 billion to remain the default search engine across Apple and Android platforms, with approximately $18 billion going to Apple. The government argued this practice effectively barred competitors from developing their own search engines competitively.
Google to contest antitrust ruling
Google's president of Global Affairs, Kent Walker, announced the company's intention to appeal the decision. Walker defended Google's actions, asserting that they leveraged their dominant position to create the most effective and useful search engine for consumers and advertisers. The outcome of this case could set a precedent for other antitrust lawsuits currently navigating through the courts.
Antitrust suits against Google and other tech giants
The Department of Justice (DOJ) and attorneys general from 38 states and territories filed similar but separate antitrust suits against Google in 2020. They alleged that Google unfairly blocked potential search rivals like Microsoft's Bing and DuckDuckGo. The DOJ estimated that Google dominated a 90% share of the search market, a figure disputed by Google. This case's outcome could influence other antitrust lawsuits, including those against Apple, Meta, and Amazon.
Potential impact on Google's business and market
The ruling could also affect the DOJ's second antitrust suit against Google, which alleges that Google illegally monopolized the digital ads market. Remedies for Google's behavior, yet to be decided by the judge, could include forcing the company to modify how it operates its search business or ordering it to divest parts of that business. Following the ruling, shares of Alphabet, Google's parent company, dropped 4.5%.
Microsoft Bing looks to capitalize on Google's antitrust defeat
Google's landmark antitrust defeat has opened a potential window for Bing, Microsoft's long-standing search engine competitor. As per The Information, several senior executives at Microsoft are discussing strategies to capitalize on this unexpected opportunity. They are also exploring the possibility of Bing replacing Google as the default search engine on Apple products. The ultimate impact of Google's antitrust loss on Bing and other rivals remains to be seen as the ruling itself may take years to translate into concrete changes.
