DOJ considers breaking up Google after judge’s ruling on monopoly practices

Oct 09, 2024

Lauren Taylor Anchor/Reporter

By Lauren Taylor (Anchor/Reporter), Jack Henry (Video Editor)

This report was created with support from enhanced software.

The U.S. Department of Justice (DOJ) is contemplating breaking up Google, following a federal judge’s ruling that the tech giant illegally monopolized the online search market. This move could dramatically reshape the tech landscape, targeting Google’s dominance in search, browsers and mobile operating systems.

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The DOJ may ask a federal judge to force Google to sell off crucial parts of its business, marking Washington’s first attempt to break up a company for illegal monopolization since the Microsoft case two decades ago.

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In a filing, the DOJ proposed sanctions aiming to prevent Google from leveraging products like Chrome, Android and AI to benefit its search business, potentially reshaping how technology giants conduct business.

At the heart of Google’s alleged monopoly lies a multibillion dollar strategy of securing default search engine status across devices. This practice has not only solidified Google’s market dominance but also raised significant concerns about fair competition.

Google’s annual payments reached $26.3 billion in 2021, with Apple receiving $18 billion to maintain its status as the default search engine on smartphones and browsers. The government said these exclusive agreements effectively stifled competition and limited consumer choice in the search engine market.

Federal prosecutors are considering measures that would require Google to open its search and AI data to competitors, which could reshape the landscape of digital innovation.

In a blog post, Google’s vice president of regulatory affairs, Lee-Anne Mulholland, called the DOJ’s proposed changes “radical.” She said the tech giant plans to make its case in court next year.

“This case is about a set of search distribution contracts,” Mulholland wrote. “Rather than focus on that, the government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness.”

The judge in the case said he plans to rule on the remedies by August 2025.

Tags: antitrust, Antitrust Violations, Artificial Intelligence, Google, Google search, U.S. Department of Justice

THE U.S. DEPARTMENT OF JUSTICE IS CONTEMPLATING BREAKING UP GOOGLE, FOLLOWING A FEDERAL JUDGE’S RULING THAT THE TECH GIANT ILLEGALLY MONOPOLIZED THE ONLINE SEARCH MARKET.

THIS MOVE COULD DRAMATICALLY RESHAPE THE TECH LANDSCAPE, TARGETING GOOGLE’S DOMINANCE IN SEARCH, BROWSERS, AND MOBILE OPERATING SYSTEMS.

THE DOJ MAY ASK A FEDERAL JUDGE TO FORCE GOOGLE TO SELL OFF CRUCIAL PARTS OF ITS BUSINESS, MARKING WASHINGTON’S FIRST ATTEMPT TO BREAK UP A COMPANY FOR ILLEGAL MONOPOLIZATION SINCE THE MICROSOFT CASE TWO DECADES AGO.

IN A FILING, THE DOJ PROPOSED SANCTIONS AIMING TO PREVENT GOOGLE FROM LEVERAGING PRODUCTS LIKE CHROME, ANDROID, AND AI TO BENEFIT ITS SEARCH BUSINESS, POTENTIALLY RESHAPING HOW TECHNOLOGY GIANTS CONDUCT BUSINESS.

AT THE HEART OF GOOGLE’S ALLEGED MONOPOLY LIES A MULTI-BILLION DOLLAR STRATEGY OF SECURING DEFAULT SEARCH ENGINE STATUS ACROSS DEVICES. THIS PRACTICE HAS NOT ONLY SOLIDIFIED GOOGLE’S MARKET DOMINANCE BUT ALSO RAISED SIGNIFICANT CONCERNS ABOUT FAIR COMPETITION.

GOOGLE’S ANNUAL PAYMENTS REACHED $26.3 BILLION IN 2021, WITH APPLE RECEIVING $18 BILLION, TO MAINTAIN ITS STATUS AS THE DEFAULT SEARCH ENGINE ON SMARTPHONES AND BROWSERS.

THE GOVERNMENT SAYS THESE EXCLUSIVE AGREEMENTS HAVE EFFECTIVELY STIFLED COMPETITION AND LIMITED CONSUMER CHOICE IN THE SEARCH ENGINE MARKET.

FEDERAL PROSECUTORS ARE CONSIDERING MEASURES THAT WOULD REQUIRE GOOGLE TO OPEN ITS SEARCH AND AI DATA TO COMPETITORS, WHICH COULD RESHAPE THE LANDSCAPE OF DIGITAL INNOVATION.

IN A BLOG POST, GOOGLE’S VICE PRESIDENT OF REGULATORY AFFAIRS RESPONDED CALLING THE DOJ’S PROPOSED CHANGES “RADICAL.” SHE SAYS THE TECH GIANT PLANS TO MAKE ITS CASE IN COURT NEXT YEAR, WRITING: “THIS CASE IS ABOUT A SET OF SEARCH DISTRIBUTION CONTRACTS. RATHER THAN FOCUS ON THAT, THE GOVERNMENT SEEMS TO BE PURSUING A SWEEPING AGENDA THAT WILL IMPACT NUMEROUS INDUSTRIES AND PRODUCTS, WITH SIGNIFICANT UNINTENDED CONSEQUENCES FOR CONSUMERS, BUSINESSES, AND AMERICAN COMPETITIVENESS.”

THE JUDGE IN THE CASE SAID HE PLANS TO RULE ON THE REMEDIES BY AUGUST 2025.