- The Department of Justice late Tuesday indicated that it was considering a possible breakup of Google as an antitrust remedy.
- The DOJ said it was “considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search.”
- The judge has yet to decide on the remedies, and Google will likely appeal, drawing out the process potentially for years.
In a filing, the DOJ outlined possible measures to curb Google’s monopoly, which could involve contract restrictions, product requirements to ensure non-discrimination, data-sharing mandates, and structural changes. The department is also exploring whether to prevent Google from leveraging products like Chrome, Play, and Android to give its search engine an unfair advantage, especially over emerging competitors using technologies such as artificial intelligence.
The DOJ further proposed limiting or banning default agreements and revenue-sharing arrangements tied to search products, including the high-cost deals Google has with Apple’s iPhone and Samsung devices. To mitigate this, the DOJ suggested implementing a “choice screen” that would allow users to select alternative search engines.
These recommendations aim to dismantle Google’s current control over search distribution and prevent future dominance in the space.
The filing comes in the wake of a U.S. judge’s ruling in August, which found that Google holds a monopoly in the search market. This decision followed the DOJ’s 2020 landmark case, which argued that Google maintained its dominance through barriers to entry and a feedback loop reinforcing its control. The court found that Google had violated Section 2 of the Sherman Act, which prohibits monopolistic practices.
Google’s president of global affairs, Kent Walker, stated that the company intends to appeal the ruling, emphasizing that the court acknowledged the high quality of Google’s search products in its decision.
Additionally, the DOJ recommended that Google share its search index data and models with competitors, including those related to AI-powered search and ad ranking systems. The agency is also considering restrictions on Google’s use of certain data that cannot be easily shared due to privacy concerns.
Judge Amit Mehta is expected to rule on these remedies by August 2025, though any appeals by Google could delay a final outcome for years.
In response to the DOJ’s filing, Google’s vice president of regulatory affairs, Lee-Anne Mulholland, described the recommendations as “radical” and warned that breaking up products like Chrome or Android could have widespread negative impacts on various industries.
Legal experts suggest that while a breakup of Google is unlikely, the court may push for the company to abandon certain exclusive agreements, such as those with Apple. They also believe that the court may encourage making it easier for users to switch to other search engines.
Google’s search business remains highly profitable, with “Google Search & Other” generating $48.5 billion in revenue in the second quarter alone, accounting for 57% of Alphabet’s overall revenue. The company holds a dominant 90% share of the search market.
Meanwhile, in a separate antitrust case, a U.S. judge recently issued a permanent injunction requiring Google to provide alternatives to its Google Play store for Android apps. Another antitrust case focusing on Google’s ad tech business also concluded in September.
Source: https://www.cnbc.com/2024/10/08/doj...google-breakup-following-monopoly-ruling.html