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US Considers Forcing Google Breakup In Historic Antitrust Case

Published on 9 Oct, 2024, 1:40 PM IST
Updated on 15 Oct, 2024, 2:26 PM IST
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Krishna SinhaChaudhury
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The US DOJ is specifically examining ways to prevent Google from leveraging products like Chrome, Play, and Android to benefit its search business and AI developments. (Image credit: Boliviainteligente/Unsplash)

In a landmark antitrust action, the US Department of Justice (DOJ) is mulling to ask a federal judge to break up tech giant Google, marking what could be the most significant tech industry intervention since the Microsoft case two decades ago.

Proposed Options Target Google's Search Dominance

According to the court filing, antitrust enforcers are evaluating various options to address Google's market dominance. The US DOJ is specifically examining ways to prevent Google from leveraging products like Chrome, Play, and Android to benefit its search business and AI developments.

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"The Justice Department is considering behavioural 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," the agency stated in its filing, as quoted by news agency Bloomberg.

What Is Google's Response

Google has strongly opposed the DOJ's proposals, with Lee-Anne Mulholland, VP of regulatory affairs, describing them as "radical" in a blog post. 

"We believe that today's blueprint goes well beyond the legal scope of the Court's decision about Search distribution contracts," she wrote.

Judge Amit Mehta, who previously ruled that Google violated antitrust laws in search and advertising markets, will oversee a remedy trial next spring. A final decision is expected by August 2025, though Google has already indicated its intention to appeal.

Intensifying Regulatory Scrutiny Of Tech Firms

The likely breakup request comes amid intensifying regulatory scrutiny of major tech companies. The DOJ recently sued Apple over competition concerns, while the FTC is investigating AI investments by tech giants including Alphabet, Microsoft, and Amazon.

The European Union (EU) has similarly considered breaking up Google's business to address antitrust concerns, with Competition Chief Margrethe Vestager stating that "divestiture is the only way" to resolve competitive issues in the ad tech sector.

Industry analyst Daniel Ives of Wedbush Securities offers a cautious outlook: "We believe a breakup of Google is unlikely at this point despite the antitrust swirls. Google will battle this in the courts for years."

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