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US Justice Department Weighs Action Against Google’s Search Dominance

Thursday 15 August 2024 - 10:40

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The U.S. Department of Justice (DOJ) is exploring potential actions following a landmark ruling that found Google guilty of monopolizing the online search market.

Alphabet, Google’s parent company, saw its shares drop by 3% after the announcement. The DOJ is considering measures under antitrust laws, which could include forcing Google to share data with competitors, implementing regulations to curb its dominance, or even dismantling parts of its operations.

This follows a decision by U.S. District Court Judge Amit Mehta, who ruled that Google violated the Sherman Antitrust Act by maintaining an illegal monopoly in search and advertising. The court found that Google stifled competition by securing deals with companies like Apple and Samsung, ensuring its search engine remained the default on their devices. This practice hindered innovation and inflated advertising costs.

Google’s market dominance is clear, with an 89.2% share in general search services and 94.9% on mobile devices. The ruling only addressed liability, leaving potential remedies for future hearings. These could range from altering business practices to breaking up segments like Chrome or Android.

Google plans to appeal, arguing that the ruling penalizes its success in providing a superior search engine.