Federal judge rules Google violated antitrust law

A federal judge ruled that Google maintained an illegal monopoly in search and advertising markets, marking a significant victory for the Department of Justice. This is the first major decision in a wave of tech monopoly cases brought by the U.S. government in recent years, potentially setting a precedent for future rulings against other tech giants. Among other facts established, Google pays Apple $20 billion annually for default search status on iPhones.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Amit Mehta wrote in his decision.

Key details. Here are the main points:

• Judge Mehta found Google violated Section 2 of the Sherman Act, which prohibits monopolies.
• The court focused on Google’s exclusive search deals with Android and Apple devices as key to its anticompetitive behavior.
• The ruling focuses on Google’s liability, not remedies.
• Decision comes after a 10-week trial last fall.

Why we care. This is doubtless the beginning of a long story rather than the end of one. It will take some time before the implications for digital advertising are clear.

Dig deeper: Why Google lost: The DoJ’s case in 11 slides

What’s next. Even before we get to appeals:

• Remedies to address Google’s monopoly will be determined in future proceedings.
• Google faces another DOJ trial over its adtech business, starting September 9.