Expert Observing Fallout of Google Antitrust Case in Australia

A U.S. ​federal judge has ruled that ​Google violated ⁢antitrust laws and held a monopoly ‍over online search⁤ services. This ruling raises questions about the implications for Australia, where authorities ⁤have been trying to‍ hold the internet giant accountable for years. According to Rob Nicholls, a Senior Research Associate at the University of Sydney, ⁤Australia’s consumer law ‌is not concerned with monopolies but ⁤does ⁢dictate that market power should not be misused.

The case against Google in the⁣ U.S. is⁢ significant because it is the​ first non-European antitrust case against the company. The European Union has⁣ a ​long history of accusing Google of abusing⁣ its powers. However, Nicholls‍ believes that ⁢this case⁢ is still in its‌ early stages and‌ expects Google to appeal the ruling.

In Australia, there are key differences compared to the U.S., as there is no genuine antitrust⁣ power ‌like in America.⁣ Nevertheless, this case will be closely observed by Australia’s ACCC (Australian Competition and Consumer Commission).​ Normally, such a case against Google would⁤ go before a jury in the ⁣United⁤ States, but Google opted for a judge-only trial by paying not to ‍have​ a jury trial.

The ACCC’s 2021 report on Google highlighted that existing competition‍ laws alone were insufficient to address competition issues in the sector‍ and recommended⁣ giving ACCC powers to develop specific laws in response.

The U.S. case against Google​ argued that it had‍ monopoly power in search ads and text ads with a market share of 60-65 percent—a level considered as constituting ‍monopoly power under U.S. law.

District Judge ⁢Amit Mehta​ issued his ruling on August 5th after careful consideration​ of witness testimony and evidence. He concluded ⁤that “Google is a⁤ monopolist” and​ had violated Section 2 of ‌the ⁢Sherman Act—an important U.S. antitrust law enforcing free competition.

The Australian Competition and Consumer Commission (ACCC) ⁢inquiry‌ conducted in 2021 identified concerns regarding‍ Google’s ⁤dominance in ad tech space—controlling key ⁣parts of ad tech supply chain with ​more than 90 ‍percent⁣ of ad impressions online⁢ passing ​through at least one Google service last year.

Google’s position was​ further entrenched through acquisitions like youtube‌ in 2006. The report ‌also found evidence suggesting that Google favored​ its own⁤ services over competitors’, preventing rival ad ​tech services from accessing ads on youtube among other practices detrimental to competition.

According to⁤ former Chair Rod Sims, this‍ lack of competition likely led​ to higher ad tech‍ fees resulting in increased costs​ for publishers and advertisers while potentially reducing online content ⁤quality ‍or quantity—ultimately burdening⁣ consumers financially.

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