Judge Orders U.S. Regulators to Suggest Penalties for Google's Search Monopoly by Year's End

A U.S. judge has ordered the government to suggest penalties for Google by the end of the year, accusing the company of running an illegal monopoly with its search engine. This comes after Google was found to be violating the Sherman Antitrust Act, a law designed to prevent businesses from dominating markets and stifling competition.

On September 6, Judge Amit Mehta told the Justice Department to come up with ways to penalize Google, with the final decision expected next year. Google could face severe consequences, such as being broken up or stopped from paying companies to make its search engine the default on smartphones. A hearing is scheduled for early 2024, and a ruling on penalties could be made by August 2025.

Google's lawyer, John Schmidtlein, argued that the company needs to see the specific penalties proposed before making a defense.

This antitrust case, which began in 2020, has been ongoing through both the Trump and Biden administrations. It represents one of the first major legal battles against a tech giant in recent times. Judge Mehta's ruling, made in August, concluded that Google’s parent company, Alphabet, used unfair business practices to keep its dominant position in the search engine market.

The Sherman Antitrust Act, which was passed in 1890, exists to ensure competition in the marketplace by preventing companies from monopolizing. Prosecutors allege that Google paid device makers, like Apple, to install its search engine as the default on almost all smartphones, helping the company control nearly 90% of the market. This led to increased business for Google’s ad platform and other services.

Colorado Attorney General Phil Weiser, who has been a key figure in this case, mentioned two possible solutions: either breaking up Google or banning the company from making deals that force its search engine onto devices. These measures aim to curb Google’s anti-competitive behavior.

Meanwhile, Google is facing additional antitrust issues, including a separate investigation by the European Union and a lawsuit from Yelp, an online review platform.