The verdict comes as a blow for the US Department of Justice, who had filed the antitrust case against Alphabet in 2020. However, judge Amit Mehta did bar Google from entering into exclusive contracts for internet search like the one it has with Apple. However, deals that allow an option to make Chrome the default search browser, are allowed.
“Cutting off payments from Google almost certainly will impose substantial — in some cases, crippling — downstream harms to distribution partners, related markets, and consumers, which counsels against a broad payment ban,” the judge wrote.
Last year, another US court had found that Google illegally monopolised the market for online search and advertising. The final verdict will be delivered on September 10.Apple favours the Google search by giving it the best placement on the Safari search bar on its Mac and iPhones. Users can switch to Bing, DuckDuckGo and other options. The verdict means a status quo for Apple and allows them to continue getting payments from Google for this favour, which amounts to at least $20 billion. Apple shares also rose 3% in extended trading
Judge Mehta said in his ruling that the government “overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints.”
Google is facing another possible breakup in second Justice Department case challenging its monopoly over technology used to buy, sell and display advertising around the web. US District Judge Leonie Brinkema in Virginia ruled in favor of the government earlier this year and will hold a hearing in September to determine whether to force the company to sell tools used by websites selling ad space.
(With Inputs From Agencies.)
