US government might split up Google

The US Department of Justice (DOJ) has indicated that it might propose breaking up Google’s de facto monopoly. Read Full Article at RT.com

US government might split up Google
The US Department of Justice (DOJ) is exploring the option of implementing “structural remedies” to address Google's monopoly.

The DOJ has indicated that it may seek to dismantle Google's substantial market control by segregating its search operations from its Android operating system, Chrome web browser, and Google Play app store. A filing submitted on Tuesday reveals that Google could encounter both “behavioral and structural remedies” aimed at curbing the company’s unfair competitive practices within its ecosystem. The DOJ claims that Google's actions have led to “interlocking and pernicious harms” for users, emphasizing the need to restore competition in the search engine sector.

”Google’s unlawful behavior has enabled it to accumulate and use data at the expense of rivals,” the DOJ stated. “As a result, plaintiffs are considering remedies that would prohibit Google from using or retaining data that cannot be effectively shared with others due to privacy concerns,” it added, arguing that “genuine privacy concerns” must be distinguished from “pretextual arguments” meant to sustain its dominant position.

This consideration follows a federal judge's ruling in August, which found that Google had violated US antitrust laws. “Google is a monopolist, and it has acted as one to maintain its monopoly,” Judge Amit Mehta remarked, highlighting that the company spent billions to ensure its status as the default search engine on smartphones and web browsers.

In response to the ruling, the DOJ contended that due to Google’s violations of antitrust regulations, remedies should “unfetter markets from Google’s exclusionary conduct, remove barriers to competition, deny Google the fruits of its statutory violations, and prevent Google from monopolizing these markets and related markets in the future.”

Google has reacted by denouncing the government's proposal as “radical,” stating in a blog post on Wednesday that it would diminish customer experience and severely affect “American competitiveness.”

“Splitting off Chrome or Android would break them,” Google asserted. “Billions of people get online thanks to Chrome and Android existing as free products. Few companies would have the ability or incentive to keep them open source or to invest in them at the same level we do.”

The situation will continue to evolve, with the DOJ expected to present more detailed proposals by November 20, and Google set to offer its response by December 20.

The repercussions for Google and its parent company, Alphabet, remain uncertain. A notable historical parallel exists with the US government's attempts in the 1990s to break up Microsoft due to its software market dominance. Microsoft appealed the ruling, leading the DOJ to eventually abandon the case.

Currently, Google is also facing a separate antitrust lawsuit initiated by DOJ attorneys alongside 17 states, which alleges that its advertising business is anti-competitive. Additionally, the company has incurred significant fines in Europe related to monopoly cases. Other major tech firms, such as Meta Platforms, Amazon, and Apple, have similarly faced legal actions from federal antitrust regulators over accusations of operating illegal monopolies.

Anna Muller for TROIB News