The United States Government is considering breaking up Google LLC to address its monopoly in the online search market, suggesting the tech giant to sell some of its divisions or products.
In one of the boldest moves yet to curb the influence of this company, the Department of Justice (DoJ) laid out this possibility this week after winning a landmark antitrust case in August, with District of Columbia Judge Amit Mehta formally labeling the company a "monopolist" and ruling that the giant had illegally maintained its dominance in online search.
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In a court document outlining possible penalties, the DoJ indicated it might pursue "structural remedies," including forcing the sale of key Google products such as the Chrome browser, Play app store, and Android operating system. These measures aim to prevent Google from leveraging its other products to strengthen its search engine’s market position. Additionally, the DoJ could require Google to share user search data with competitors and limit its ability to use search data to train new AI models.
A breakup of Google would drastically reshape the search industry, where the company currently handles over 90% of online queries, and it would impact Alphabet, Google’s parent company, which is one of the most valuable companies in the world.
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“For more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little-to-no incentive to compete for users.
A full remedy requires ending Google's current control and preventing it from dominating future distribution," the DoJ stated.
The government is currently considering remedies to address four categories of harms related to Google:
(1) search distribution and revenue sharing,
(2) generation and display of search results,
(3) advertising scale and monetization, and
(4) accumulation and use of data.
“For each area, the remedies necessary to prevent and restrain monopoly maintenance could include contract requirements and prohibitions; non-discrimination product requirements; data and interoperability requirements; and structural requirements,” the document reads.
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This development follows Judge Amit Mehta's August ruling that Google had spent billions on exclusive deals to maintain its illegal dominance in search. Prosecutors also suggested banning Google’s exclusive contracts, such as the $20 billion it pays Apple annually to be the default search engine on Safari, and enforcing "non-discrimination" policies for its products like Android and the Play Store.
The DoJ may also demand that Google share its vast trove of data used to enhance search ranking models and advertising algorithms, which prosecutors claim was obtained unlawfully. Google could be prohibited from retaining data it cannot effectively share with competitors.
The case is now moving into its second phase, with the DoJ and Google expected to submit their proposed final judgments in November and December, respectively. Mehta has scheduled hearings for April 2025 and aims to make a final ruling by August 2025.
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Google has vowed to appeal the decision to the U.S. Supreme Court, which could extend the legal battle for years.
This Google case follows recent legal setbacks for the company. A California judge recently ruled that Google must allow competitors to create their own app marketplaces and payment systems on its Android operating system, a decision Google plans to appeal.
In early October, Google lost a final European Union court appeal against a €2.4-billion fine imposed by the European Commission in a major antitrust shopping service case.
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