Google's rise to dominance as the leading internet powerhouse sparks intense scrutiny from governments worldwide.
Let's Talk Tech Monopolies
These days, the term "just Google it" is commonly used to find information online. With the reach of Google's services, from smartphones to cars, it's evident that it's become a household name in the digital world. But this success hasn't been without controversy. The US government has accused Google of holding an illegal monopoly in its search engine, online advertising business, and app store.
Since 2023, federal judges and juries have ruled in favor of this assertion. Google is currently fighting to overturn these decisions, but if they fail, the tech behemoth, valuing nearly $2 trillion, could face a historic breakup, much like what took place with AT&T. Meta, Microsoft, Amazon, and Apple have also felt the heat of antitrust scrutiny.
A breakup could be particularly problematic for Google, as artificial intelligence (AI) is surging, and chatbots are seen as a potential threat to its core business. The week of July 15, 2024, saw a series of hearings that could decide the fate of one of the tech industry's most influential companies, with a decision expected in August.
So, how did Google rise to such a powerful position? The answer might be closer than you think.
Dominating Search
Google is no longer just a search engine. Its dominance is a result of strategic acquisitions and product launches dating back to the early 2000s, catapulting it to the top of popular online platforms, including YouTube (the most commonly used social media platform by teens) and the most popular web browser and smartphone software available today.
During the late 1990s and early 2000s, Google's search engine gained traction due to its unique ranking method: favoring the most important results based on how often other websites linked to them, making it easier to find credible and relevant websites. Meanwhile, rivals like Yahoo and Ask Jeeves indexed web results like "file folders," organizing results by topic.
Google inked contracts worth tens of billions of dollars to be the default search provider on iPhones, while also striking agreements to preload its search engine and browser on Android phones. These arrangements, along with Google's Chrome browser being closely tied to its search engine, have reportedly stifled competition in the search market.
In 2023, US District Judge Amit Mehta deemed those deals anticompetitive, labelling Google a "monopolist" in online search. The Department of Justice now wants Google to either spin off or make major changes to its Chrome browser and Android operating system.
Google has vowed to appeal the case, claiming the DOJ's proposal is "backwards looking" and poses security risks, among other concerns. Instead, they are proposing amending browser agreements to enable users to switch default browser providers every 12 months, among other changes.
Powerful Search Engine Leads to Lucrative Ad Business
As Google's search engine became more popular, so did its profitable advertising business, generating $66.9 billion in revenue during the first quarter of 2025. Google was able to sell a lot of ads because it delivered the most eyeballs and was able to deliver a lot of these ("the most") because it sold a lot of ads, according to analysts.
Google maintained its monopoly power in online ad markets by bundling its ad server, publisher exchange, and ad network, according to court rulings. This practice prevented competitors from gaining access to the necessary tools and infrastructure to effectively compete in the online ad market.
The legal stakes are high for Google, with predictions that AI tools will soon take over some of the functions of search engines. If Google fails to adapt, it could lose market share to competitors like OpenAI's ChatGPT.
A Word from Google
When asked for comment on this story, a Google spokesperson directed us to their public statements regarding the antitrust cases. Google maintains that they promote innovation, provide high-quality products, and adhere to fair business practices.
The antitrust case against Google is not just about one company; it's about the entire tech industry. The outcome could set a precedent for future antitrust proceedings against tech giants and alter the competitive landscape of the digital world. At this pivotal moment, the future of the tech industry hangs in the balance. Let's wait and see what unfolds in August.
- The US government has accused Google of maintaining an illegal monopoly not only in its search engine but also in online advertising and app store sectors, potentially leading to a historic breakup similar to AT&T's in 2023.
- In the tech industry's general news, Google's strategies since the early 2000s, including strategic acquisitions and product launches, have ensured its dominance over popular online platforms like YouTube and the most used web browser and smartphone software.
- A major concern for Google, with the rise of artificial intelligence (AI) and chatbots, is that a potential breakup could jeopardize its core business, especially since AI tools may soon replace some of the functions of search engines.
- In the midst of the antitrust case against it, Google has stressed its commitment to promoting innovation, providing high-quality products, and adhering to fair business practices, arguing that the Department of Justice's remedy poses security risks and is "backwards looking."
