Google filed an appeal challenging a federal court decision that found its search engine operates as an illegal monopoly.
The company contested the August 2024 ruling by U.S. District Judge Amit Mehta, who determined Google violated the Sherman Antitrust Act. Mehta ruled the company maintained its dominance through exclusive distribution agreements with device manufacturers and browser developers.
The tech giant argued the judge made legal errors in his analysis. Google maintains its search engine faces robust competition and does not meet the legal definition of a monopoly.
The original case centered on agreements requiring Google Search as the default option on smartphones and web browsers. The U.S. Department of Justice brought the lawsuit in 2020, alleging these deals blocked rivals from gaining market share.
Mehta’s decision marked the most significant antitrust ruling against a technology company since the Microsoft case two decades earlier. The judge found Google controlled roughly 90% of the general search market.
Remedies pending
The court has not yet determined remedies for the violation. The Justice Department proposed options ranging from behavioral restrictions to structural changes that could force Google to divest parts of its business.
Google’s appeal will go to the U.S. Court of Appeals for the District of Columbia Circuit. The appellate process typically takes 12 to 18 months before a decision.
The company generated $175 billion in search advertising revenue in 2023, according to Alphabet's annual filing. Search represents the largest revenue source for Google’s parent company.
Similar cases are pending against Google in other jurisdictions. The European Commission fined the company €4.3 billion in 2018 for antitrust violations related to its Android mobile operating system.
The Sherman Act, passed in 1890, prohibits business activities that reduce competition in the marketplace. Section 2 of the law specifically addresses monopolization and attempts to monopolize.
Google’s deals with Apple alone cost the company an estimated $20 billion annually to remain the default search engine on Safari, according to trial testimony. Similar agreements exist with Samsung, Mozilla and other manufacturers.
The appeal filing runs several hundred pages and challenges both Mehta’s factual findings and legal conclusions. Google disputes the relevant market definition the judge used to calculate its market share.
