After months of speculation from analysts and investors, the United States Justice Department has officially charged Google (NASDAQ: GOOGL) with antitrust violations.

Announced yesterday, the Justice Department has said in a Washington D.C. federal court that “Google is monopolist in the general search services, search advertising, and general search text advertising markets.” The agency also said that the company aggressively uses its position and revenue to “foreclose rivals and protect its monopolies.”

The company is a wholly-owned subsidiary of Alphabet Inc., but the two names are often used interchangeably.

Charges Brought Forward After Extensive Investigation

The Justice Department investigated for 16 months on suspicion that it had violated the Sherman Act. The company’s search-advertising business divisions were specifically targeted.

Some of the specific breaches raised in the charges include:

• Making Google the default search engine on devices using the Android operating system.
• Anti-forking agreements with hardware manufacturers that use Android.
• Making Google the default search engine on popular web browsers.
• Purchasing competitors to maintain a monopoly.

By contractually tying manufacturers to the Android operating system along with Google search and services, the company has stifled competition. The Justice Department believes that the company has breached antitrust laws in doing so.

Google is disputing the charges, and said yesterday that the lawsuit was “deeply flawed.” Kent Walker, the Chief Legal Officer at Google said that people use the company’s services “because they choose to, not because they’re forced to, or because they can’t find alternatives.”

Google has taken the position that if it is found guilty, consumers will ultimately suffer from lower-quality search alternatives and higher device prices.

Is Google Unchallenged?

In its complaint, the Justice Department said that “Google is now the unchallenged gateway to the internet for billions of users worldwide… new companies with innovative business models cannot emerge from Google’s long shadow.”

Several states would likely agree with this position. Iowa, Nebraska, Tennessee, Utah, North Carolina, New York, and Colorado were all investigating before the Justice Department raised a federal case. These states will continue with their investigations and may combine their charges with the ongoing case.

Alphabet shares didn’t suffer after the news. The stock was up 1.38% at closing yesterday, and it remains a high performing growth stock. Investors should follow the developments closely to determine whether this will have a major impact on holdings. As it is today, it’s unclear which side of the law’s favor Google will find itself on.