Google Lost Its Antitrust Lawsuit: Now What?

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U.S. v. Google LLC

The long-simmering federal antitrust lawsuit against Google resulted in a loss for the search giant. Google violated antitrust laws, according to the suit.

In his ruling, Judge Amit Mehta (of the United States District Court for the District of Columbia) said “Google is a monopolist, and it has acted as one to maintain its monopoly,” citing its 2021 payments of $26 billion to Apple, Samsung, and others. 

These payments were part of agreements between the tech companies and Google, granting the search giant default search engine provider exclusivity on their various devices.

For instance, it was revealed that Google pays Apple a percentage of its ad revenue on Safari and Chrome, amounting to $20 billion in 2022 alone, locking Google Search into the iPhone and other devices by default.

The federal court found that Google’s illegal monopoly stifled competition and innovation, cutting out search competitors like DuckDuckGo and Microsoft Bing. Regulators and Mehta say Google’s practices ran afoul of the Sherman Act. 

Attorney General Merrick Garland said, “This victory against Google is a historic win for the American people,” before reiterating the Department of Justice’s commitment to big tech-focused enforcement.

What’s next?

Google holds a staggering 91.02% market share of the online search market as of August 2024, but uncertainty about its future is driving anxiety among marketers. 

Will Google’s business be picked apart because of the antitrust trial? Could competitors flood in? What about your search strategy?

What we know

Kent Walker, Google’s president of Global Affairs, swiftly announced Google’s intention to appeal the ruling. 

The appeal means there will likely be no sudden changes and any potential volatility will be delayed. This case began in 2020 and appeals can take years as well.

As Terakeet’s Senior Director of Strategy Andrew Hagemann says, “By the time these lawsuits actually take effect, which could be five years from now, the internet will be so drastically different that they will not matter as much as we first thought.”

Judge Mehta’s ruling did not include specific sanctions or a breakup plan for Google. Determining the punishment will take time and there’s scant information online about it. Actually executing a tech giant breakup will prove even more complex. 

Sure, there will be consequences and changes, but even according to the ruling itself, Google’s dominance is largely due to its own performance, engineering know-how, and the value and convenience it offers consumers. 

Judge Mehta’s closing argument stated that Google is “the industry’s highest quality search engine, which has earned Google the trust of hundreds of millions of daily users.” 

We’re confident in Google’s future and we think marketers worldwide should be too.

For brands — stay the course

Brands that have invested in the search channel (through optimizing assets, search advertising campaigns, and traditional SEO) and have achieved success in today’s Google Search ecosystem should maintain and expand their efforts.

According to Hagemann, “You don’t want to overreact to the ruling or be reactionary in your strategy because the legal impact may be far less relevant by the time it happens.”

Value is everything

Google’s algorithms privilege content that provides maximum value to consumers. This value-centric approach will continue regardless of what a post-monopoly Google looks like. Google will get even better at serving people’s needs because that’s ultimately the name of the game.

Expand and conquer

Brands must double down on existing and new search strategies and diversify into new or less explored channels. Expanding your efforts to create content that meets consumer needs early and often throughout the buyer’s journey is vital.

Search strategy (especially as part of owned asset optimization) based on the relentless pursuit of consumer needs will continue to deliver wins in the short and long term.

Diversify your marketing spend investment

“Between many stakeholders, we are developing and expanding our service offering to help clients further diversify their marketing strategies,” says Hagemann.

Part of what led us to adopt owned asset optimization (OAO) as our offering is the idea of diversification. Here’s how we’re responding to the potential changes at Google and how you can be ready as the internet and search evolve.

Investing 101

Even the least experienced investor knows that a diversified portfolio is the best way to hedge against loss. The same principle applies to modern marketing and digital spaces — like search — that are rife with uncertainty and volatility.

With potential antitrust action on the horizon, the Google story could get dicey. And if it does, marketers with that “diversified portfolio” of marketing investments achieve broader reach and protection from loss of engagement, trust, and market share.

Consumer needs-driven marketing

Because OAO begins with data-driven consumer insights, it offers brands the chance to unify all marketing under the relentless pursuit of consumer needs. 

Start there and infuse all marketing with that data. Then, build your owned assets into a well-diversified portfolio across all the channels that matter to your brand.

Avoid complacency

While it may seem like the same old internet, the truth is that the internet is constantly in flux. Wild cards like the Google antitrust decision and trends like AI adoption are changing the game and creating increased fragmentation online. These things seem to happen gradually, then all at once. 

It’s important for brands to constantly consider the next evolution of their digital strategy in response to these and other new developments. Brands that aren’t on the cutting edge and do not adapt risk being left behind as the pace of change accelerates.

“As the internet continues to fragment and evolve, it pays to be an early adopter, now more than ever,” says Hagemann. “The more things change, the more it rewards smart marketers who use quick decision making.”

This means monitoring emerging trends, staying informed about regulatory developments, and being agile enough to pivot when necessary.