Google is appealing a court's decision that found it monopolized its online search and advertising businesses. Concurrently, the company has filed a notice to postpone a court order requiring it to share data with rival firms as a remedy for its alleged illegal monopoly.
Alphabet's search engine firm filed the appeal on Friday, along with a request to suspend the implementation of remedies intended to reduce its competitive advantage over other search engine companies. The U.S. Court of Appeals is expected to hear the case, and based on historical data, it may take approximately a year to issue a decision following the appeal notice. This timeline suggests that if the appeal is successful, Google could continue its current operations for about another year without being compelled to share its data with competitors.
Google Seeks to Postpone Court Order Requiring Data Sharing with Rivals
In 2024, U.S. District Court Judge Amit Mehta ruled that Google employed unlawful tactics to maintain a monopoly in the online search and advertising sectors, disadvantaging other search engine firms. The lawsuit was initially filed in 2020 during the Trump administration and proceeded to trial in the fall of 2023.
According to Judge Mehta's ruling, Google entered into agreements with smartphone manufacturers, including Samsung Electronics Inc. and Apple Inc., to ensure its search engine was set as the default option. These deals, which reportedly cost Google around $20 billion, effectively restricted key distribution channels for competing companies.
The U.S. Justice Department had sought the divestiture of Google's Chrome browser, a remedy that Judge Mehta rejected during a second trial held last year. Instead, Mehta mandated that Google must continue to pay to maintain its search engine and AI applications as the default on partner smartphones, but with the stipulation that these deals must be rebid annually. This annual rebidding process is intended to provide competitors with an equal opportunity to vie for these lucrative arrangements.
Furthermore, Google was ordered to share specific company data with its rivals. A report from Cryptopolitan indicated that the U.S. District Court directed the firm to begin sharing certain data with competitors, excluding exclusive deals that guarantee its default status on devices. This ruling could potentially allow competitors, particularly AI companies developing their own search engines such as OpenAI, Anthropic, and Perplexity, to gain direct benefits from Google's market insights.
Google Argues Court Overlooked User Choice in Search Engine Preference
Google has affirmed its commitment to pursuing all available avenues to overturn the ruling that mandates data sharing with rivals while the appeal is pending. The company maintains that the remedies imposed by the court were unjustified and should not have been implemented. As of now, the U.S. Justice Department and other plaintiffs have until February 3 to respond to Mehta's ruling, which notably rejected more stringent remedies like the sale of its Chrome browser and its Android partnerships.
"As we have long said, the Court’s August 2024 ruling ignored the reality that people use Google because they want to, not because they’re forced to. The decision failed to account for the rapid pace of innovation and intense competition we face from established players and well-funded startups."
Lee-Anne Mulholland, Google’s vice president of regulatory affairs
According to Mulholland, Judge Mehta's ruling did not adequately consider the testimony provided by browser makers such as Apple and Mozilla. These companies reportedly confirmed that they chose to feature Google's services because they offer the highest quality search experience for their users.
Alphabet's stock price experienced a 1% decline following the announcement, trading at $330.34 at the time of publication. The stock has seen a significant increase of approximately 78% since July, with notable acceleration in September after the ruling. Investors are reportedly anticipating the company's leadership in the AI search business.