The Google to allow app store rivals on Android”>US Department of Justice
‘s attempt to challenge Google’s core search business marks a significant moment for the tech industry. Following a landmark antitrust court victory against Google in August, the US trustbusters have proposed wide-ranging sanctions to disrupt its business. While this is currently just an outline of potential measures, it signals a potentially historic upheaval in the tech world with winners and losers. The proposed changes could redirect the billions of dollars that Google pays other tech companies for their role in promoting its search service, lower prices for advertisers who are overpaying due to Google’s practices, and end the free availability of important Google technologies like Android and Chrome. Most importantly, these changes could open up competition in internet search for the first time since Google became dominant.The share price of Alphabet (Google’s parent company) only fell 3% on this news as investors believe that any effects from the antitrust case are still too distant and uncertain to impact current valuations. However, some investors are starting to pay more attention as they anticipate potential repercussions from a court loss.
While there is still a long road ahead for the DoJ, including persuading courts to back their proposals and winning appeals if necessary, legal experts acknowledge that breaking up monopolies is challenging but not impossible. The DoJ will need to convince courts not only to block specific illegal practices by Google but also adopt broader actions that address entrenched advantages enjoyed by the tech giant.
One controversial aspect of the proposed remedies is potentially breaking up Google into separate entities such as Android and Chrome. However, critics argue that this may have little direct effect on competition since these entities have strong network effects and would likely continue contracting with Google.
Another suggestion from the DoJ is forcing Google to share its core data with rivals so they can reproduce or refine its search results independently. This proposal has raised concerns about user privacy but proponents argue that no directly personal user data would be involved.
if successful, these proposals could lead to more competition in internet search and benefit start-ups using generative artificial intelligence technology. However, it remains uncertain how far-reaching these measures will be as they face legal challenges from both sides.
