Is Google’s Antitrust Violation Microsoft's Big Opportunity?

For both the IT giant and its rivals, this decision may have far-reaching effects.

Figurines with computers and smartphones are seen in front of Google logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Google has violated antitrust rules by abusing its dominant position in the search and advertising sectors, a federal judge has ruled. For both the IT giant and its rivals, this decision may have far-reaching effects.

The arguments

The Financial Stakes

Judge Mehta underlined that Google had entered into illegal agreements to set its default search engine as the one on online browsers, including Apple’s. According to various testimonies Google paid Apple $18 billion in 2021 to continue serving as the company’s default search engine for iOS.

High-Profile Testimonies

Prominent individuals who testified during the trial included Apple’s head of machine learning John Giannandrea, Microsoft CEO Satya Nadella, and Google CEO Sundar Pichai. In highlighting the search market’s lucrative potential, Nadella revealed that Microsoft was willing to pay Apple up to $15 billion annually in exchange for Bing becoming the default search engine.

Apple’s Choice: Google Over Bing

Apple decided to continue with Google in spite of Microsoft’s efforts. Giannandrea testified that Apple discovered Google to be noticeably superior to Bing at responding to mobile queries. Based on a comparative investigation that demonstrated Google’s superior performance in mobile search, this conclusion was made.

The facts

The federal judge’s ruling that Google operated like a monopolist to preserve its market dominance has put the business in the midst of a major legal battle.

“The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,” U.S. District Judge Amit Mehta, Washington, D.C., wrote as quoted by Reuters.

This decision may cause a stir in the search engine industry, giving rivals a chance to gain ground.

Microsoft’s Potential Gains

The Information reported that this decision would help Microsoft’s Bing search engine. Following Judge Amit Mehta’s ruling, a number of Bing senior officials voiced enthusiasm about the prospect of Google’s replacement as Apple’s default search engine.

Meanwhile, analysts believe this ruling against Google has the potential to significantly benefit Microsoft and alter the competitive landscape of the search engine sector. Nevertheless, Apple’s ultimate decision will be based on how well Bing and Google match customer needs in comparison.