D.C. District Court Finds Google Monopolized Online Search Text Ads Markets

On August 5, 2024, Judge Amit Mehta of the U.S. District Court for the District of Columbia concluded that Google has monopolized markets for online searches and search text advertising and unlawfully engaged in exclusionary conduct in those markets. Specifically, the court found that Google used revenue sharing agreements with web browser developers, mobile device manufacturers, and wireless carriers to secure its status as the default search engine on most computers and cellphones across the United States. These agreements prevented rivals from competing for users, leaving Google to field around 90% of search queries and to sell the lion's share of search text advertising. The court also determined that Google's monopoly power permitted it to charge supracompetitive prices for search text ads. The court must next decide how to remedy Google's conduct, a process that likely will extend well into next year.

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