
In a decision by the District Court of the U.S. District of Columbia, Google has been found guilty of monopolizing its leadership in online search by its exclusive deals with browser providers. These deals, the court says, entrenched a position it had won by being the best search engine, keeping competitors from being able to challenge its position. The decision relies on the fact that very few people take advantage of the ability to change their default browser search engines.
The court has not yet announced any remedies and is unlikely to until Google has exhausted its appeals. The court will be unable to take the EU remedy of requiring a “choice screen” on devices, as the makers of the devices are not a party to the lawsuit in question. It may be that the court bans Google from bidding for the position of default search engine, which would surely benefit Microsoft the most while hurting the device manufacturers, which would receive less revenue from the process and might therefore have to increase prices. It is hard to see consumer welfare benefiting.