Alphabet Appeals Search Monopoly Ruling as GOOGL Shares Dip
Alphabet Inc. has filed an appeal against a US District Court ruling that found Google unlawfully monopolized search markets through default agreements with Apple and smartphone manufacturers. Judge Amit Mehta's August 2024 decision targeted contracts that cemented Google as the default search provider on Chrome and Safari browsers.
GOOGL shares fell marginally in early trading as investors weighed the appeal's potential to delay enforcement. The DC Circuit Court is expected to rule within 12 months, maintaining status quo for now. Advertisers may recalibrate bids amid uncertainty over future search slot allocations.
The case originated in 2020 and reached trial in 2023, spotlighting how tech giants leverage default positions to stifle competition. A reversal could force restructuring of Google's lucrative search advertising business, which dominates the $200B+ digital ad market.
