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Form analysis
4 forms found in the DOM

/search

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home News




DOJ CONSIDERS BREAKING UP GOOGLE IN MAJOR SHAKEUP TO ITS SEARCH DOMINANCE

by Tim Sweezy — Thursday, October 10, 2024, 11:08 AM EDT




Comments



The Department of Justice (DoJ) is considering breaking up Alphabet’s Google in
order to shake up its search dominance. The proposed remedies stem from a
landmark ruling, which found Google had built an illegal monopoly, and would be
the first breakup since AT&T in the 1980s, and the attempted breakup of
Microsoft in the 1990s.

The initial ruling against Google came back in August of this year. US District
Judge Amit Mehta remarked that “Google was a monopolist,” and found the company
had “violated Section 2 of the Sherman Act.” Shortly after the initial ruling,
rumors of Google’s possible forced breakup began swirling. That possibility grew
in likelihood this week, as the DoJ filed court papers saying it is considering
enforcing “structural remedies” that would help prevent the tech giant from
using some of its products such as Chrome and Android as an advantage over its
rivals.

The judgment remarked in part: “Plaintiffs are considering behavioral and
structural remedies that would prevent Google from using products such as
Chrome, Play, and Android to advantage Google search and Google search-related
products and features – including emerging search access points and features,
such as artificial intelligence –over rivals or new entrants.”





Google responded quickly to the news, stating it would be challenging any case
submitted by the DoJ, and that the proposals presented were an “overreach” by
the government and would harm consumers.

In a blog post, Google’s vice president of global affairs, Lee-Anne Mulholland
remarked, “We are concerned the DOJ is already signaling requests that go far
beyond the specific legal issues in this case.” Regarding breaking Android and
the Google Play Store from the main company, she argued, “Make no mistake:
Breaking them off would change their business models, raise the cost of devices,
and undermine Android and Google Play in their robust competition with Apple’s
iPhone and App Store.”

During the trial, witnesses testified Google had billions of dollars per year to
ensure it was the default search engine on smartphones, such as the iPhone, and
on web browsers like Mozilla Firefox. One example given was in 2021, Google
spent $26.3 billion on deals to ensure it was the default search engine. Given
the fact Google currently controls around 90% of the US search engine market,
while competitors Bing and Yahoo only control about 3%, makes it tough for
Google to argue against some sort of breakup.

The filing by the DoJ also remarked, “Fully remedying these harms requires not
only ending Google’s control of distribution today, but also ensuring Google
cannot control the distribution tomorrow.”

It is important to note, any suggested remedy by the DoJ must be approved by the
ruling judge.






Comments

Tags:  Android, search engine, antitrust, DoJ, Play Store, (nasdaq:goog)



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