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ZDNET’s key takeaways
- Google got off easily.
- It won’t have to divest itself of Chrome, Android, or its ad data.
- Nevertheless, Google is expected to appeal the decision.
In a landmark decision, Judge Amit Mehta of the US District Court ruled Google violated the Sherman Antitrust Act by stifling competition. As Mehta wrote in his decision, “Google is a monopolist,–> and it has acted as one to maintain its monopoly.”
‘Incredibly messy’
Now, Mehta has announced what that judgment means in his long-awaited decision against Google<!–>. While the decision comes with important restrictions, these are short of granting the Department of Justice’s request that the tech giant be forced to sell off core assets, such as its Chrome browser and Android operating system, or breaking up its digital ad business.
Also: Google is killing the Android phone feature that once made them popular
Mehta concluded that Google maintained an illegal monopoly in the online search and search advertising markets through exclusive contracts and other anticompetitive tactics. However, he decided that the government’s push for divestiture – calling for Google to sell off Chrome or Android – was “overreaching” and not appropriately justified, declaring such a remedy “incredibly messy” and unsupported by direct evidence.
He added that in the case of Chrome, “The court’s task is to discern between conduct that maintains a monopoly through anticompetitive acts as distinct–> from growth or development as a consequence of a superior product, business acumen, or historic accident.”
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No more exclusive deals
Instead, Mehta has barred Google from striking or maintaining exclusive deals with phone and browser makers that guarantee its search engine as the default option. This order upends long-standing contracts with Apple, Samsung, and Mozilla. Google may continue to pay for preferred placement, but only under non-exclusive agreements. So, Mozilla, which depends on Google paying it to be Firefox’s default search engine, will stay in business.
Additionally, the judge ordered Google to share some search data, specifically portions of user interaction and search index information, with rival competitors. Google will not, however, be required to share its advertising data. What this result will look like in practice remains an open question.
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To enforce these changes, Mehta outlined the formation of an independent technology oversight committee, charged with policing Google’s compliance for six years. The company must also submit to ongoing federal scrutiny to ensure it doesn’t recreate exclusionary arrangements using new technologies, such as generative AI products.
A Google win
This ruling marks the most significant monopoly case since the Microsoft trial nearly 30 years ago.
Also: ChatGPT is reportedly scraping Google Search data to answer your questions – here’s how
Google’s search advertising business, which generated over $198 billion last year, remains under pressure from ongoing antitrust scrutiny even as AI-driven search alternatives, such as Perplexity, grow.
In the meantime, the market is overjoyed at what it sees as a Google win. Google stock jumped 8%–> as the news quickly spread. Nevertheless, Google is widely expected to appeal the decision, and the judge’s orders will be paused pending appeal. This process will take years.
Source: Robotics - zdnet.com
