In a landmark ruling, a U.S. federal judge said that Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google has unlawfully maintained monopolies in search and text advertising markets. This decision marked a significant win for the Department of Justice led by Jonathan Kanter.
What Happened: Kanter, the Assistant Attorney General for the Antitrust Division of the DOJ, has been a pivotal figure in recent antitrust enforcement actions against major tech firms, including Google and Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN).
Kanter’s firm stance against monopolies is reflected in his actions since assuming his role in November 2021. In March last year, he spearheaded the DOJ’s antitrust lawsuit against Apple, accusing the tech behemoth of antitrust law violations with practices designed to keep customers dependent on its iPhones.
This lawsuit was in addition to two DOJ antitrust cases against Google, alleging that the company illegally fortified its monopolies.
Earlier this year in March, Kanter outlined the Justice Department's initiatives aimed at safeguarding competition and fostering innovation for the future of technology.
During his speech, he said, “Competition does not just protect the markets and technologies of today, but the innovations of tomorrow.”
Together with Lina Khan, the chair of the Federal Trade Commission, Kanter has also taken action against four of the six largest public tech companies, in a comprehensive effort to curb the industry’s power, reported the New York Times.
However, the forthcoming November election could potentially hinder their efforts.
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Why It Matters: This ruling against Google is a significant development in the ongoing battle against monopolistic practices in the tech industry.
In the ruling on Monday, the court stated that Google violated Section 2 of the Sherman Act, which prohibits monopolistic practices.
The DOJ, in its 2020 case, alleged that Google established formidable entry barriers and a self-sustaining feedback loop, thereby maintaining its dominance in the general search market.
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