A federal judge in the U.S. has ruled that Google parent company Alphabet (GOOG/GOOGL) has an illegal monopoly when it comes to online search and text advertising.
The landmark case that was brought against Alphabet by the U.S. government in 2020 alleged that Google has maintained its dominant position in online search by creating barriers to entry for competitors.
The judge in the case ruled that Alphabet has violated the “Sherman Act” that outlaws monopolies. The ruling is the first anti-monopoly decision against a tech company in decades.
The antitrust case had been brought against Alphabet by the U.S. Department of Justice and attorneys general from 38 U.S. states and territories, led by Colorado and Nebraska.
In its ruling, the court highlighted Google’s exclusive search arrangements on Android and Apple devices, saying that they reaffirmed Google’s dominance over internet search.
General search applies to Google’s core online search engine, while text advertising refers to the text ads that run alongside search results on people’s computers and mobile devices.
The court ruled that in both of those areas, Google has operated as a monopoly.
Alphabet said in a written statement that it is disappointed with the ruling and plans to appeal the decision.
The stock of Alphabet has risen 21% in the last 12 months and currently trades at $159.25 U.S. per share.
Tech Insider
