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.