ETtech Explainer: Google vs US in search monopoly case

In August 2024, US federal Judge Amit P Mehta ruled that Google broke antitrust law when it paid companies like Apple, Samsung, and Mozilla billions of dollars to automatically appear as the search engine in browsers and on smartphones. He ruled that Google's monopoly allowed it to inflate the prices for some search ads, bending the rules of competition.

To fix this issue, the government had suggested aggressive measures such as forcing Google to sell its Chrome web browser and share proprietary data with competitors. The prosecutors also wanted Google to stop paying Apple money to keep Google Search the default on its devices. Google had said some tweaks to its business practices would be enough.

Now, there has been some movement in this case. Let's answer some questions about this.

What did the judge decide?

After hearing witnesses from both sides, Judge Mehta amended his ruling. On September 2, Judge Mehta ruled that Google does not have to sell Chrome or Android, but the judge said that Google must do the following:

• Share some search data with rivals (to help them compete).
• Stop making “exclusive” deals that block other search engines from being preinstalled or promoted.
• The deal with Apple will continue, where the search giant pays around $20 billion a year to be the default search on Safari and other Apple platforms.

What is the deal with Apple?

The infamous Apple-Google deal works like this: Google pays Apple about $20 billion per year to make sure its search engine is set as the default for the Safari browser on iPhones, iPads, and Macs, plus Siri and other Apple services.

Google essentially leases the default position on Apple platforms. Users can change this through their settings. Under the new proposals, the deal can continue, but it should not be exclusive. This means Apple should still allow users to choose alternatives like Bing or DuckDuckGo.

Revenue from this privilege goes to Apple, comprising about 20% of Apple Services' income, and Google benefits from the incoming search traffic from Apple users. Google handles the technology and earns ad revenue, and Apple doesn’t need to run its own search engine.

Under the court ruling, Apple can renegotiate the rates annually, maybe increasing what it charges Google.

How will this affect the wider tech sector?

The judge noted that the tech landscape has gone through a transformation since the antitrust case against Google was launched by the US Justice Department and 11 states in 2020, with the emergence of artificial intelligence (AI).

The viral technology has been "a challenge to traditional search, which give(s) the court hope that Google will not simply outbid competitors for distribution if superior products emerge," he wrote in his ruling.

Others in the sector were unhappy with the ruling. "Google will still be allowed to continue to use its monopoly to hold back competitors, including in AI search," said Gabriel Weinberg, chief executive of privacy-conscious search engine DuckDuckGo.

Beyond Google, observers have pointed out that Apple and Mozilla are both big winners from the decision.

What about ordinary search and AI users?

In the near term, some search data will be shared by Google with competitors under the ruling, with Google vice president of regulatory affairs, Lee-Ann Mulholland, saying the company has "concerns about how these requirements will impact our users and their privacy."

(With inputs from AFP)