US government says it is considering breaking up Google following antitrust monopoly ruling
Posted On October 9, 2024
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The U.S. government is considering asking a judge to force Google to break up parts of its business—such as its Chrome browser and Android operating system—to address its dominance in online search. This move could significantly alter the structure of the tech giant.
On Tuesday, the Justice Department (DOJ) announced it might push for Alphabet’s Google to divest key assets, arguing that the company uses them to maintain an illegal monopoly in online search.
This development follows a major ruling two months ago when a federal judge found Google guilty of abusing its market power to monopolize search and text advertising. Google, which handles about 90% of all U.S. online searches, was ruled to have violated antitrust laws.
The Justice Department’s potential remedies could dramatically reshape how Americans access information online, reduce Google’s revenue streams, and provide more opportunities for competitors. In addition to breaking up parts of Google’s business, the Justice Department is considering ending the company’s practice of paying to have its search engine pre-installed or set as the default on new devices.
“The proposed fixes will also aim to keep Google’s past dominance from extending to the burgeoning business of artificial intelligence, prosecutors said. The Justice Department might also ask the court to end Google’s payments to have its search engine pre-installed or set as the default on new devices,” Reuters reported.
Google reportedly spent $26.3 billion in 2021 to ensure its search engine remained the default on devices from manufacturers like Apple, helping it maintain its dominance.
In a related push against Big Tech, 13 states are suing TikTok, accusing the platform of harming young users by being addictive and detrimental to mental health, claims that are controversial but widely accepted.
The Justice Department stated that truly fixing the situation means not just addressing Google’s current control over distribution but preventing it from holding sway over future technologies as well, including the fast-growing field of artificial intelligence.
“Fully remedying these harms requires not only ending Google’s control of distribution today, but also ensuring Google cannot control the distribution of tomorrow,” the DOJ said.
Google has announced plans to appeal the ruling, calling the proposed actions “radical” and saying they extend far beyond the specific legal issues at hand.
In 2020, the Department of Justice, alongside a bipartisan coalition of attorneys general from 38 states and territories led by Colorado and Nebraska, initiated similar antitrust lawsuits against Google for abusing its search dominance.
This is not the first time Google has been accused of abusing its power. In 2022, Google agreed to pay $90 million to settle a class-action lawsuit with app developers over alleged anti-competitive behavior regarding Google’s App Store policies and also for enticing users to make in-app purchases.