On Friday, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google appealed a federal judge's landmark antitrust ruling that found the company illegally maintained dominance in online search through multibillion-dollar default search agreements, including its long-standing partnership with Apple Inc. (NASDAQ:AAPL).
Google Challenges Monopoly Decision In Search Antitrust Case
Google filed an appeal against a 2024 ruling by U.S. District Judge Amit Mehta, who concluded that the company violated antitrust law by using exclusive agreements to cement its position in the online search market.
The case centered on the billions of dollars Google paid annually to companies such as Apple to ensure its search engine remained the default option on smartphones and web browsers.
The U.S. Department of Justice argued those deals unfairly limited competition and made it harder for rivals like Microsoft Corp's (NASDAQ:MSFT) Bing to gain market share.
In its appeal, Google said the court made legal errors and argued the agreements did not prevent device makers or browser companies from promoting competing search engines.
Google Says Search Dominance Came From Innovation
Google maintained that its market leadership was earned through product quality and innovation rather than unlawful conduct.
The company said consumers were free to switch to alternative search services and argued it succeeded by building a "superior search engine" through years of technological development and business strategy.
The Justice Department is expected to submit its response in July.
The agency did not immediately respond to Benzinga's request for comments.
Ruling Could Impact AI Competition And Search Data Access
Judge Mehta's earlier ruling also included measures designed to restore competition, including requiring Google to share certain search data with competitors.
That data could potentially benefit artificial intelligence firms, including OpenAI.
If the appeals court overturns the decision, those remedies could be blocked.
However, if Google loses, the company could escalate the case to the U.S. Supreme Court in what is shaping up to be one of the most significant tech antitrust battles in years.
Price Action: Alphabet Class A shares closed down 1.21% at $382.97 on Friday, while Class C fell 1.07% to $379.38; both stocks edged lower in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Alphabet has a strong Quality score of 95.16%. It shows a positive trend across short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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