A Federal Judge rules against Google today and the principle cause appeared to be that Google paid Apple $10 billion a year to be the default search engine. Here is an excerpt of the courts findings:
After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly. It has violated Section 2 of the Sherman Act.
Specifically, the court holds that there are relevant product markets for general search services and general search text ads; Google has monopoly power in those markets; Google’s distribution agreements are exclusive and have anticompetitive effects; and Google has not offered valid procompetitive justifications for those agreements. Importantly, the court also finds that Google has exercised its monopoly power by charging supracompetitive prices for general search text ads. That conduct has allowed Google to earn monopoly profits.
So what now? Well this impacts both search and advertising so this is going to be huge, it hits at the very heart of Google’s empire.
Reflecting more on the implications of this moment and, given the example of prior technology monopolies, I optimistically assume that this regulation could unleash new possibilities, and a torrent of invention for the open web. Either way, it really feels like the end of an epoch.
However, given my previous post I am also wondering what assumptions I might be overlooking.
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