US Considers Breakup of Google in Antitrust Case

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Justice Department’s Bold Proposal

The US Justice Department has informed a federal judge that it is contemplating a significant measure: potentially requiring Google to divest parts of its operations to mitigate the harm caused by its monopolistic control over the online search market. This move could mark a historic step in antitrust enforcement against one of the world’s largest tech companies.

In a court filing on Tuesday, antitrust case officials indicated that Judge Amit Mehta could mandate that Alphabet Inc. provide access to the underlying data it employs to develop its search results and artificial intelligence products. This suggestion is part of a broader strategy to address the monopolistic practices attributed to Google.

Structural and Behavioral Remedies Explored

The Justice Department outlined various options in its 32-page document for the judge’s consideration as the case transitions into the remedy phase. They proposed both structural and behavioral remedies aimed at preventing Google from leveraging its other products—such as Chrome, Play, and Android—to favor its search engine and related services over competitors. This includes emerging features and access points, like artificial intelligence.

The Justice Department indicated that a detailed proposal regarding these remedies will be submitted next month. Following the filing, futures on the Nasdaq 100 Index, which includes Alphabet as a major component, saw a decline of approximately 0.3%.

Historical Context of Antitrust Actions

This effort represents the most substantial action taken to curb the power of a major tech company for alleged illegal monopolization since the unsuccessful attempts to break up Microsoft Corp. two decades ago. Antitrust enforcers argued that Google had gained competitive advantages and valuable data through unlawful distribution agreements that established its search engine as the default option on smartphones and web browsers.

Google’s Android platform plays a crucial role in this ecosystem, as it encompasses the operating system used on a wide range of devices and includes numerous applications.

Additional Proposals Under Consideration

Furthermore, the Justice Department is contemplating requiring Google to allow websites greater flexibility in opting out of its artificial intelligence products. They are also looking into measures that would address Google’s dominance in search text advertising. This could involve requiring Google to provide more transparency and control to advertisers regarding the placement of their ads.

Another potential proposal includes restricting Google from investing in its search competitors or potential rivals, aiming to limit its ability to consolidate power further.

Google’s Response to the Filing

In response to the Justice Department’s filing, Google has described the proposed measures as radical, warning of potential unintended consequences for consumers, businesses, and the broader American competitive landscape. Google’s vice president of regulatory affairs expressed concerns that the proposals exceed the legal framework established by the court’s decision concerning search distribution contracts.

Growing Antitrust Pressures

Pressure is mounting on Google from various ongoing antitrust cases. Judge Mehta, who ruled earlier this summer that Google violated antitrust case laws in both the online search and search text advertising markets, plans to conduct a trial concerning the proposed remedies next spring, with a decision expected by August 2025. Although Google intends to appeal Mehta’s ruling, it will need to wait for the finalization of a remedy before doing so.

Market analyst Daniel Ives has suggested that a breakup of Google seems unlikely at this stage, predicting that the company will engage in lengthy legal battles to contest the findings.

State-Level Actions and Related Cases

Separately, a coalition of states that filed a lawsuit against Google over its search monopoly is considering efforts to compel the tech giant to fund a public education campaign aimed at helping users switch search engines.

In a related development, a different federal judge has ordered Google to make its app store more accessible for a period of three years, following an antitrust case initiated by Epic Games Inc., which addressed Google’s dominance in-app distribution on Android smartphones. Google has indicated plans to appeal this ruling as well.

Additionally, last month saw the Justice Department and Google entangled in a third antitrust lawsuit focused on the company’s dominance in the online display ad market, with closing arguments scheduled for late November. Should the court determine that Google has monopolized this sector, antitrust enforcers may push for the company to divest parts of its ad tech business.