The landmark decision followed a four-year legal battle between US officials and Google, signalling a potential step change in legislators’ efforts to bring tech giants to heel.
The US government’s argument hinged on the fact that Google made payments worth billions of dollars to companies such as Apple, Samsung and others for prime placement on smartphones and browsers, which it said violated antitrust laws.
Witnesses included Satya Nadella, Microsoft’s chief executive, who claimed that deals struck by Google had effectively locked Microsoft’s Bing search engine out of the market.
Google’s lawyers argued throughout the case that its dominance of the market came through offering the best service, calling the Justice Department’s case “deeply flawed”. It plans to appeal the ruling.
Kent Walker, Google’s president of global affairs, previously said: “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”
The New York Times said Judge Mehta had asked officials and Google to come up with a path forward by early September.
The case was the first antitrust case brought by the US government against a tech company since the 1990s, when it sued Microsoft in a bid to limit its control over the computer market.
Judge Mehta’s ruling will likely embolden legislators across the world, who have been grappling with the way social media and tech are changing society and seeking ways to bring tech giants under control.
Google was contacted for comment.