A potential court-ordered break-up of Google would be unprecedented in modern American corporate history, dealing a blow to the Big Tech company. However, Google’s legal team sees an opportunity in mounting a response to the potential sanctions revealed by the Department of Justice (DoJ). They believe that Google’s arguments about competition thriving in search ads and artificial intelligence are more convincing now than ever before, especially with the recent launch of OpenAI’s breakthrough ChatGPT chatbot.
Google plans to spin out its arguments through appeals courts as part of its strategy to deflect or delay the effects of a federal judge’s ruling in August. The judge ruled that Google maintained an illegal monopoly by paying billions of dollars to device makers, mobile carriers, and browser developers. The complex and high-stakes nature of this case means that any impact on Google’s business is likely to be postponed for years. The company intends to appeal the liability decision and may also contest any remedies imposed.
Despite facing three separate lawsuits accusing it of abusing its dominance in search, advertising, and mobile platforms, Google argues that it is currently facing stiff competition from new players like Amazon and TikTok. It pointed out that its share of US search advertising spending is predicted to fall below 50% next year due to Amazon’s rapid growth in marketing business.
The DoJ successfully argued that Google monopolizes a narrower market for general search engines despite emerging competitors like Amazon. StatCounter data shows that Google still handles over 90% of online search queries.
Google believes that forcing it to divest assets or share data with competitors would go beyond the specific legal issues at hand. Instead, it prefers remedies focused on contracts with partners like Apple and Mozilla while still allowing payment for distribution without exclusivity demands.
Experts have differing opinions on how regulators should proceed. Some argue for complementary remedies up through divestitures if necessary since conduct remedies have been evaded by companies before. Others believe structural remedies are necessary because mechanisms for circumvention are endless.
Google has also raised concerns about sharing sensitive information with foreign companies if forced to reveal its “secret sauce” behind its search engine algorithms. It warns against government overreach impacting American innovation and economic leadership in AI technology.
The DoJ disagrees with this perspective, stating that allowing Google’s monopoly power risks further entrenching its dominance rather than fostering healthy competition.
This case will likely be appealed all the way up to the US Supreme Court but could take several years before any remedies are enforced if it proceeds through the courts.
