Jack Corrigan
Google has officially been named a monopoly. On Aug. 5, a federal judge charged the tech giant with illegally using its market power to harm rival search engines, marking the first antitrust defeat for a major internet platform in more than 20 years—and thereby calling into question the business practices of Silicon Valley’s most powerful companies.
Many experts have speculated the landmark decision will make judges more receptive to antitrust action in other ongoing cases against the Big Tech platforms, especially with regards to the burgeoning AI industry. Today, the AI ecosystem is dominated by many of the same companies that the government is challenging in court, and those companies are using the same tactics to entrench their power in AI markets.
Judge Amit Mehta’s ruling in the Google case centered on the massive sums of money the company paid firms like Apple and Samsung to make its search engine the default on their smartphones and browsers. These “exclusive agreements” offered Google “access to scale that its rivals cannot match” and left other search engines “at a persistent competitive disadvantage,” Judge Mehta wrote. By effectively “freezing” the existing search ecosystem in place, the payments “reduced the incentive to invest and innovate in search.”
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