The US government is considering drastic measures to break up Google’s dominance in the online search industry, which could lead to the company divesting critical parts of its business, such as its Chrome browser and Android operating system. The potential legal move follows a judge’s August ruling that declared Google had illegally established a monopoly in online search. With the tech giant controlling about 90% of internet searches in the US, the Justice Department is pushing for remedies that could transform how Americans access information and shrink Google’s revenue while creating more opportunities for competitors.
One of the government’s proposals involves halting Google’s massive payments to ensure its search engine remains the default on new devices. In 2021 alone, Google paid $26.3 billion to companies like Apple to keep its search engine pre-installed on smartphones and browsers. The Justice Department argues that ending these agreements is necessary to prevent Google from maintaining its dominant position in search distribution today and in the future, particularly as the market expands into AI.
Prosecutors are also eyeing Google’s role in the growing AI sector. They propose opening up Google’s vast indexes, data, and models to its rivals to prevent the company from monopolising AI-driven search technologies. Additional suggestions include limiting Google’s ability to make deals, restricting competitors’ access to web content and allowing websites to opt out of having their data used for AI training. Google, however, has pushed back, arguing that such interventions could distort the rapidly developing AI industry and stifle innovation at a crucial moment.
The stakes are high for Google, which plans to appeal the proposed remedies, calling them ‘radical’ and far beyond the scope of the legal case. Google maintains that its search engine’s popularity is due to its superior quality and points to competition from companies like Amazon as proof of a competitive market. Meanwhile, the company faces mounting legal battles, including a separate ruling forcing it to open its Play app store to greater competition.
The Justice Department is expected to submit more detailed proposals by 20 November, with Google having until 20 December to respond with its suggestions.
Why does it matter?
The antitrust case is seen as a significant victory for regulators seeking to rein in the power of Big Tech, with similar lawsuits already filed against Meta, Amazon, and Apple. Smaller competitors, like Yelp and DuckDuckGo, have voiced support for breaking up Google’s assets, advocating for changes that could level the playing field in both search and AI.
