Google Declared Illegal Monopoly by US Court, Potential Travel Industry Implications

A US court has ruled that Google has been maintaining an illegal monopoly over online search and search advertising markets.

“Google is a monopolist, and it has acted as one to maintain its monopoly,” stated Federal Judge Amit Mehta in his 286-page ruling.

The ruling follows an antitrust lawsuit filed by the Justice Department in 2020, accusing Google of manipulating its business practices to secure dominance in search. After a 10-week trial last fall, Judge Mehta concluded that Google had acted unlawfully.

“For more than 15 years, one general search engine has stood above the rest: Google,” Mehta said, adding that the brand is “synonymous with search”.

Decision to possibly impact travel industry

The federal ruling against Google’s monopoly could significantly impact many industries, especially the travel industry, particularly for companies that rely heavily on search visibility to attract customers. Travel companies like Booking Holdings and Expedia, the leading online travel agencies (OTAs) globally, have spend billions on Google ads to maintain their presence in search results.

According to recent data from Statista, the two OTAs significantly increased their spending on Google advertising in 2023. Booking Holdings and Expedia Group spent an estimated $3.2 billion and $2.3 billion, respectively, on Google ads in 2023, while Airbnb allocated around $604 million.

Following the ruling, the travel companies could now see changes in how Google operates its search engine. This may provide more competitive opportunities in search rankings and reduce the industry’s dependency on paid advertisements for visibility.

The decision could also benefit smaller travel companies and consumers by potentially lowering advertising costs and increasing visibility for a broader range of travel services. Reports suggest that the ruling might prompt travel companies to reevaluate their advertising strategies, especially if future legal actions curb Google’s current practices.

First major antitrust lawsuit against tech giant

The case marks the first major antitrust lawsuit against a tech company to reach trial in decades, with other major firms like Meta, Amazon, and Apple also facing similar legal challenges.

Attorney General Merrick B. Garland of the Justice Department’s Antitrust Division hailed the victory as a “historic win for the American people,” stating that “no company — no matter how large or influential — is above the law”.

Assistant Attorney General Jonathan Kanter emphasized the significance of the “landmark decision”, noting that it holds Google accountable and paves the way for innovation and protected access to information.

Google to appeal

Google has announced its intention to appeal the court’s decision.

“This decision recognizes that Google offers the best search engine but concludes that we shouldn’t be allowed to make it easily available,” said Kent Walker, President of Google Global Affairs, in a statement.

Walker expressed appreciation for the court’s acknowledgment that Google is “the industry’s highest quality search engine”, has “continued to innovate in search” and has “long been the best search engine, particularly on mobile devices”.

He also noted that while the company plans to appeal, Google will remain focused on providing helpful and easy-to-use products.