GOOGLE FACES FALLOUT FROM ILLEGAL MONOPOLY RULING IN ADVERTISING AND SEARCH

A federal judge has ruled that Google illegally maintained monopolies in online search and text advertising, a landmark decision that could reshape the $2 trillion digital economy.

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The verdict, delivered by U.S. District Judge Amit Mehta in Washington, D.C., found that Google's dominance, fueled by exclusive contracts and restrictive practices, stifled competition and innovation. For consumers, advertisers, and tech rivals, this ruling signals a potential shift in how online search and advertising markets operate, challenging Google's grip on a sector it has long controlled.

Google, a unit of Alphabet Inc., holds a commanding 90% share of the U.S. search market and generates over $300 billion annually, with search ads accounting for the majority of its revenue. The U.S. Justice Department, joined by 11 states and territories, argued that Google's agreements with device makers, like paying billions to secure default search engine status on smartphones, created insurmountable barriers for competitors. Mehta's 277-page opinion detailed how these deals, combined with Google's control over ad auctions, unfairly locked out rivals like Bing and DuckDuckGo.

The ruling marks a significant victory for antitrust enforcers, who have targeted Big Tech's market power in recent years. It follows a 2020 lawsuit accusing Google of leveraging its search dominance to suppress competition in text ads, where advertisers bid for placement alongside search results. The decision could lead to remedies ranging from banning exclusive contracts to structural changes, though Google plans to appeal, a process likely to extend into next year.