Google’s Monopoly on Search Declared Illegal: Judge’s Ruling Could Lead to Alphabet Break-Up

On August 5, U.S. District Judge Amit Mehta ruled that Google violated anti-trust laws to create an “illegal monopoly” in the search engine market, Reuters reported.

“The court concludes: Google is a monopolist and has acted to maintain its monopoly,” wrote Justice Mehta from Washington, D.C.

Google controls nearly 90% of the online search market and 95% of the smartphone search market. In 2023, Google advertising made up 77% of Alphabet’s total sales.

Following the ruling, Alphabet’s stocks fell 4.5% on August 5, amid broader tech stock declines due to recession fears.

The Ruling

Judge Mehta highlighted that Google paid $26.3 billion in 2021 alone to remain the default search engine on smartphones and browsers.

“The default is extremely valuable. Even if a new company could compete on quality, it would need to pay billions in revenue share to partners,” noted Mehta.

“No penalties or fines for Google and Alphabet have been decided yet, but future hearings will address this,” according to a BBC report. The government has asked for potential “structural relief,” which could mean breaking up Alphabet, Google’s parent company.

Action on Big Tech

This ruling is a significant win for federal authorities challenging Big Tech’s dominance. It could lead to breaking up Alphabet, greatly impacting the advertising industry.

U.S. Attorney General Merrick Garland called the ruling “a historic win for the American people,” emphasizing that no company is above the law. White House press secretary Karine Jean-Pierre also praised the decision as a “victory for the American people,” advocating for a fair and competitive internet.

However, the legal process could be lengthy, involving potential appeals to higher courts, possibly extending into 2026.

Alphabet plans to appeal the judgment, arguing that Google provides the best search engine and should be easily accessible.

Evelyn Mitchell-Wolf, a senior analyst at Emarketer, told Reuters that a prolonged legal process would delay any immediate impact on consumers.

Other tech giants like Amazon, Apple, and Meta are also under scrutiny for maintaining illegal monopolies. Microsoft previously settled with the Justice Department in 2004 over similar claims involving its Internet Explorer browser.