Google loses antitrust case, signaling shakeup in big tech

Google, the world's largest search engine, has suffered a significant defeat in a landmark antitrust lawsuit brought by U.S. authorities. On Monday, a U.S. judge ruled that Google is a monopolist and has unlawfully maintained its dominance. This pivotal decision could have far-reaching implications for the tech industry, where large companies leverage vast resources and AI technology to consolidate power.

The U.S. Department of Justice initiated the lawsuit against Google in October 2020, accusing the company of violating antitrust laws by controlling 90% of the U.S. search and online advertising markets. After four years of litigation, a federal court concluded that Google had exploited its market dominance to stifle competition and limit consumer choice. The court pointed to Google’s payments to companies such as Apple to ensure its search engine was the default on smartphones and browsers as illegal. Additionally, the ruling stated that Google’s control over smartphones and web browsers enabled the company to consistently increase online advertising fees.

For over 20 years, Google has maintained its dominance in the global search market, except in regions like South Korea and China, where local services prevail. However, if this ruling is upheld, a significant overhaul of the search market could be on the horizon. The specific penalties will be decided in future proceedings, and in the worst-case scenario, Google may be forced to divest parts of its adtech business.

Google and other major tech companies have long been criticized for undermining market fairness by restricting consumer choice and inflating prices. This scrutiny has led countries around the world to tighten regulations on the platform industry. The European Union, for example, adopted the Digital Markets Act in March and has provisionally found that companies such as Apple, Microsoft, and Meta have violated antitrust laws. In addition, France is preparing to sanction Nvidia, a key player in the AI sector, for alleged antitrust violations.

In South Korea, global tech giants, including YouTube, Google, and Microsoft, are expanding their market dominance, but few measures are in place to address their negative impact. While South Korea implemented a law in 2022 to prevent Google and Apple from forcing consumers to use their in-app billing systems, enforcement has been minimal. The country’s proposed platform fair competition law remains stalled. South Korea must establish legal frameworks to curb monopolistic practices while ensuring they do not stifle innovation.