The US government is considering taking action against Google in an effort to break up the company’s monopoly in the search market. The Department of Justice (DoJ) has proposed potential remedies that would prevent Google from using its products, such as the Chrome browser and Android operating system, to gain an advantage over competitors. These remedies could also include forcing Google to share search data with rivals and limiting its use of search results for training artificial intelligence models.
A breakup of Google would have a significant impact on the search market, where the company currently handles over 90% of online queries. It would also reshape Alphabet, Google’s parent company, which is one of the most valuable companies globally.
The DoJ argues that for more than a decade, Google has controlled distribution channels, leaving little room for competition. They believe that ending this control is necessary not only for today but also to ensure fair distribution in the future.
This proposal comes after a judge ruled in August that Google had violated antitrust laws by maintaining an illegal dominance over search through exclusive deals worth billions of dollars. In response to these proposed remedies, Google has called them “radical and sweeping” and claims they go beyond the scope of legal issues in the case.
Shares of Alphabet remained relatively unchanged following this news. If successful, this case could be one of the biggest antitrust victories for the DoJ since Microsoft’s breakup 24 years ago.
The trial will now move into its second phase where Judge Amit Mehta will determine what sanctions should be imposed on Google. Both parties are expected to file their final judgments and witness lists later this year.
In addition to potential spin-offs or divestitures, other possible remedies include banning exclusive contracts like Apple’s default Safari search engine deal with Google and imposing non-discrimination measures on products like Android and Play app store.
Data privacy concerns are also addressed in these proposals by prohibiting Google from using or retaining data that cannot be effectively shared with others. The DoJ recognizes AI’s disruptive impact on online search and wants websites to have options regarding their inclusion in AI models or summaries generated by Google.
Lowering barriers for rivals in text ads and licensing ad feeds independently from search results are suggested ways to address advertising scale and monetization concerns raised by prosecutors.
This second phase trial will be crucial for Jonathan Kanter who heads the DoJ’s antitrust unit as he aims at enforcing tougher policies against Big Tech companies like Apple and Meta (formerly facebook). Lina Khan, chairperson at Federal Trade Commission (FTC), has already challenged Amazon separately along similar lines.
