Google has been defeated in an antitrust lawsuit concerning its search practices.

In a significant legal development, a U.S. federal judge has determined that Google has unlawfully maintained monopolies in the search and text advertising markets. This ruling stems from a 2020 lawsuit filed by the government, which accused Google of using barriers to entry and a feedback loop to sustain its dominance in the general search market. The court concluded that Google breached Section 2 of the Sherman Act, which prohibits monopolistic practices. This decision is notable as it is the first anti-monopoly ruling against a tech giant in several decades.

Judge Amit Mehta of the U.S. District Court for the District of Columbia stated that Google has acted to preserve its monopoly status. The Department of Justice, along with a bipartisan coalition of attorneys general from 38 states and territories, initiated similar antitrust lawsuits against Google in 2020, which were later consolidated for pretrial proceedings.

Attorney General Merrick Garland hailed the ruling as a “historic win for the American people,” emphasizing that no company is above the law and that the Justice Department will continue to enforce antitrust regulations vigorously.

The court’s decision focused on Google’s exclusive search agreements with Android and Apple devices, which were found to reinforce Google’s monopolistic behavior in the search markets. The ruling specified that Google’s core search engine and the text ads accompanying search results are areas where the company has operated as a monopoly. However, it noted that general search advertising does not constitute a market, and thus, no monopoly exists there.

Kent Walker, Google’s president of global affairs, announced that the company intends to appeal the decision, arguing that the court acknowledged the high quality of Google’s search engine but unfairly restricted its availability. Despite the ruling, Walker affirmed Google’s commitment to developing user-friendly products.

Following the announcement, Alphabet’s shares dropped by over 4%, amid a broader decline in global stock markets.