Here, you will get all the necessary information about the Google Search Engine Antitrust case. Including the history, reason, judgment, and it’s impact.
Reasons for the Google Antitrust Case
As you all know, Google controls 91% of the search engine market. Every year, Google generates billions of dollars from its various products. From Google Search and its associated businesses alone, Google makes around 175 billion dollars.
The superior quality and capability of the Google Search Engine compared to others in this market is one significant reason for this market share and revenue.
Google Search is the default search engine on devices using the Android operating system because Google owns it. However, the primary reason for this antitrust case is that Google has paid other companies to make Google Search the default search engine on their products.
Approximately, Google has paid around 10 billion dollars to Apple to make Google Search the default on iPhones and Mac devices. Similarly, Google has paid certain amounts to the Firefox browser and a few other companies as well.
Due to this business strategy, new or smaller companies cannot enter this market, allowing Google Search to automatically maintain a dominant market share.
What is the judgment?
The court found that Google holds a monopoly in the search market by providing exclusive deals to device manufacturing companies like Apple. As a result, Google is required to stop such activities, according to this judgment. Additionally, it suggests adding quick options on the browser screen to switch search engines.
However, Google has appealed the lower court’s decision to a higher court, so the current judgment cannot be fully implemented yet.
How Will This Judgment Impact the Search Market?
Even though this matter is now in the upper court, this judgment has valid reasons. Many experts believe that this judgment will not be overturned by the upper court. If upheld, this judgment could create a major impact on the search market.
- Google-Apple Contract: As per this judgment, Google can not make any direct deals with device manufacturing companies to set Google Search as the default. As a result, Google will lose this opportunity, and Apple will lose this additional income.
- Open Auction: Companies like Apple may conduct open auctions for the default search engine position. So, new companies can compete for these opportunities.
- Search Advertisement: If new companies gain a share of the search market, it will directly impact Google’s search ads revenue and its associated businesses.
- Technology Advancement: When competition is high and transparent, it fosters industry development. By removing direct deals, competitors will have the opportunity to enter this market and bring new technology.
Conclusion
Google Search Engine holds a major market share and has the full capability to maintain that position. Additionally, Google has made direct deals with browsers and device companies to make Google Search the default. As a big company, Google has the financial resources to make such agreements, but other companies in the market cannot make similar deals. The lower court identified that Google holds a monopoly in the search market and ruled that this should be stopped. This judgment has been appealed to the top court, but it has some valid points and may be upheld.
According to this judgment, Google will no longer be allowed to make direct deals or offers with other companies to set its tool as the default. As a result, many new players will enter this market. With new minds entering, the industry will expand, and users will benefit from additional options.
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