The U.S. Department of Justice (DoJ) is reportedly considering drastic measures, including the possible breakup of Google, following the recent ruling that found the tech giant guilty of monopolising the Search market.
This comes after a federal judge determined that Google, which is part of Alphabet Inc. and valued at approximately $2 trillion, had illegally maintained its dominance in the search engine sector. The ruling is seen as a significant victory in the government’s ongoing efforts to regulate major tech companies.
One of the main options being explored by the DoJ is the divestment of Google’s Android operating system, a move that could have significant implications for the tech industry. Additionally, the department is reportedly considering the potential sale of Google’s Chrome web browser and AdWords, the company’s search advertising program. These measures are being discussed as possible remedies to curb Google’s dominant market position and restore competitive balance.
A spokesperson for the Justice Department stated that they are currently evaluating the court’s decision and considering the next steps, but no final decisions have been made. Google, on its part, plans to appeal the ruling, adding another layer of complexity to the situation. The company is also facing another antitrust lawsuit from the Justice Department, which is scheduled for trial soon.
Other potential remedies under consideration by the DoJ include forcing Google to share its data with competitors and implementing safeguards to prevent the company from gaining an unfair advantage in the emerging field of artificial intelligence (AI).
The ruling revealed that in 2021, Google paid over $26 billion to companies like Apple to ensure its search engine remained the default option on platforms such as Safari, which the judge determined was a significant factor in its monopolistic practices.
Despite the severity of the ruling, some experts are skeptical about the likelihood of a Google breakup. Neil Chilson, the former chief technologist for the Federal Trade Commission (FTC), described the idea as “total wishcasting,” arguing that the court’s decision does not necessarily suggest such a drastic remedy. He emphasised that the issue at hand was more about Google’s exclusive contracts than its overall market structure.
Why is this important?
We’ve all been here before with Google and the issue of its market dominance of Search, but this latest case is indicative of a broader push by federal regulators to tackle the dominance of big tech companies, with previous antitrust actions taken against Meta Platforms, Amazon, and Apple. The debate around Google’s future continues, with some experts warning that a breakup could have severe economic consequences, while others advocate for more stringent measures to ensure fair competition in the tech industry.