A U.S. court has ruled that Google has monopolized the online search market, sparking significant reactions from the Justice Department. Among the options being considered is the possibility of demanding a breakup of the tech giant, a move that hasn’t been attempted since the unsuccessful breakup of Microsoft two decades ago. Less severe measures could include forcing Google to share more data with competitors and limiting its advantages in the rapidly developing field of artificial intelligence (AI).
The government’s primary focus could be on prohibiting the exclusive contracts that formed the basis of the lawsuit against Google. If a breakup is demanded, the most likely candidates for forced sale are the Android OS and the Chrome browser, with a potential sale of Google Ads also on the table. The Justice Department will likely take time to assess the situation, and we’ll keep you updated as this case progresses.
Judge’s Decision and Government Concerns
On August 5, Judge Amit Mehta ruled that Google had illegally monopolized the online search and search text advertising markets. Google intends to appeal, but the judge has already ordered preparations for a second phase of the case. In this phase, the government is expected to propose measures to restore competition, potentially including a breakup. Should this occur, it would be the largest such action since the AT&T breakup in the 1980s.
The Justice Department has been in consultation with companies affected by Google’s practices and has voiced concerns about the company’s dominance in search, which it believes gives Google an edge in AI development. To address this, the government might consider blocking Google from using website content for AI search results.
Potential Remedies and Future Implications
One of the remedies under consideration is requiring Google to abandon Android, which powers 2.5 billion devices globally. The company’s practice of making manufacturers pre-install its apps, such as Gmail and the Google Play Store, along with the Google search app and Chrome browser, has effectively stifled competition.
A California jury previously found that Google had monopolized the distribution of Android mobile apps, though a final ruling on the consequences is still pending. The Federal Trade Commission (FTC) has asserted that Google should not benefit from its unlawful monopolization practices. The company has paid partners, including Apple, billions to make its service the default search engine on devices and browsers.
Judge Mehta’s ruling also covered Google’s monopoly on search advertising, which contributes significantly to the company’s revenue. If the Justice Department doesn’t order a breakup, it may require Google to ensure its services, like Google Ads, are interoperable with other search engines. Another possible remedy involves selling or licensing data to competitors such as DuckDuckGo or Microsoft Bing, as Google currently receives 16 times more data than its closest rival, notes NIX Solutions.
Europe’s new digital “gatekeeper” regulations are already pushing Google to share data with third-party search engines, although Google has argued that full-scale data sharing could compromise user privacy. Meanwhile, Google’s use of web content to train AI systems has raised further concerns, leading the company to introduce a tool for blocking access to AI training, albeit with some limitations.
The situation is fluid, and further developments are expected. We’ll keep you updated on any significant changes as the case unfolds.