A US judge has ruled that Google acted illegally to maintain a monopoly on online search and advertising.

This decision is a significant setback for Google’s parent company, Alphabet, and could change how big tech companies operate.

On Monday, US District Judge Amit Mehta said that Google had used its power to suppress competition. The case, brought by the US Department of Justice in 2020, accused Google of controlling about 90% of the online search market.

Judge Mehta wrote in his 277-page opinion, “Google is a monopolist, and it has acted as one to maintain its monopoly.” He explained that Google paid billions of dollars to be the default search engine on smartphones and web browsers. “Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share,” Judge Mehta noted.

The ruling comes after a 10-week trial in Washington DC. During the trial, prosecutors claimed Google paid over $10 billion annually to companies like Apple and Samsung to ensure its search engine was the default option. They argued this prevented other companies from competing fairly. Department of Justice lawyer Kenneth Dintzer said, “The best testimony for that, for the importance of defaults, is Google’s cheque book.”

Google’s lawyers argued that the company’s search engine is popular because it is useful. Google’s lawyer, John Schmidtlein, said, “Google is winning because it’s better.” He also mentioned that Google faces competition from other search engines like Microsoft’s Bing and various specialized apps.

The ruling might lead to significant penalties for Google, but it is not yet clear what they will be. The government has requested “structural relief,” which could potentially mean breaking up the company. Google plans to appeal the decision and has stated, “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”

US Attorney General Merrick Garland called the ruling a “historic win for the American people,” stating, “No company – no matter how large or influential – is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”

In addition to this case, there are other ongoing antitrust lawsuits against major tech companies like Meta Platforms, Amazon, and Apple. Another case involving Google’s advertising technology is set to go to trial in September. In Europe, Google has already faced billions in fines for similar issues.