Breaking Up Google? DOJ Floats Major Remedies in Search Monopoly Case

The Department of Justice (DOJ) has outlined a series of recommendations aimed at promoting fairness and competition in the search engine market, with a particular focus on Google’s business practices and potential monopoly. The proposals, which could potentially reshape how search engines operate, are part of an ongoing effort to ensure that consumers and competitors alike have equal opportunities in a market where Google has long been a leader. Per CNBC, these suggestions include changes to contract terms, product interoperability and data sharing, all aimed at fostering a more competitive digital landscape.

The U.S. government announced on Tuesday that it may seek to force Google, owned by Alphabet, to divest parts of its business, including its Chrome browser and Android operating system.

The Department of Justice (DOJ) has outlined several potential remedies to address Google’s monopoly, which could drastically reshape how Americans access information online. According to the DOJ’s filings, one proposed solution is to break up Google’s control over key areas of its business to ensure it cannot monopolize the distribution of online search in the future. The department’s measures also target Google’s growing influence in artificial intelligence (AI), seeking to prevent the company from using its current dominance to stifle future AI innovations.

Per CNBC, Google has long paid billions of dollars annually to device manufacturers like Apple to ensure that its search engine is the default on most smartphones and browsers. In 2021 alone, these payments totaled $26.3 billion. Ending these deals is another remedy under consideration by the DOJ to weaken Google’s grip on the market.

In response to the DOJ’s aggressive stance, Google has criticized the proposed remedies, calling them “radical” and overreaching beyond the legal scope of the case. The tech giant maintains that it has earned its place in the market by providing a superior search product, arguing that it faces healthy competition from other companies such as Amazon and users always have the option to change their default search engine.

Read more: Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs

Alphabet, which has a market capitalization exceeding $2 trillion, has been under increasing legal scrutiny from regulators and competitors. According to CNBC, in a separate antitrust case, a U.S. judge recently ruled that Google must allow more competition within its app store, Google Play. Google is also contending with another DOJ case that seeks to dismantle its web advertising business.

As the legal battle unfolds, the DOJ is expected to file a more comprehensive proposal by November 20, with Google having until December 20 to present its counterproposals. One of the more significant requests from the DOJ involves giving Google’s competitors access to the data and models used in Google’s search and AI features. Prosecutors argue that this would level the playing field in AI and search engine innovation, a move that Google says could destabilize the entire sector. The company warned that government intervention could “skew investment” and “hobble emerging business models” in the rapidly growing AI industry.

Antitrust enforcement against Google has found some support from smaller competitors. Per CNBC, Yelp and DuckDuckGo, both of whom have long accused Google of anti-competitive behavior, argue that breaking up parts of Google’s business, such as its Chrome browser or its AI technologies, should be seriously considered. Yelp, which sued Google in August, has specifically called for prohibitions on Google giving preferential treatment to its own services in search results.

Internationally, Google faces similar scrutiny. The European Union, under its antitrust chief Margrethe Vestager, has been investigating Google for anti-competitive practices, although a breakup of Google in Europe is not expected before Vestager leaves office. Reuters has reported that Vestager had previously threatened a breakup, but is now leaning toward alternative measures.