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Justice Department Officially Recommends Breaking Up Google

 |  November 21, 2024

U.S. regulators have proposed breaking up Google to curb its dominance in the search engine market. The Department of Justice (DOJ) outlined its recommendations in a 23-page document filed late Wednesday, calling for sweeping measures to dismantle what a federal court identified as an abusive monopoly.

The DOJ’s filing follows an August ruling by U.S. District Judge Amit Mehta, which found Google guilty of maintaining an illegal stranglehold on the search engine market for over a decade. Among the proposed remedies is a forced sale of Google’s Chrome browser, described by the DOJ as a “critical search access point” that gives Google an unfair advantage. According to AP News, the department also seeks restrictions on Android, Google’s mobile operating system, to ensure it doesn’t continue favoring its own search engine.

Broad Measures to Rein in Google’s Market Power

While the DOJ stopped short of demanding a sale of Android, it emphasized that Google could face divestiture if misconduct persists. Regulators are also urging a ban on Google’s lucrative deals that make its search engine the default on devices like Apple’s iPhone, a practice they say stifles competition. Furthermore, the DOJ is calling for measures to limit Google’s ability to prioritize its own services, such as YouTube and its AI platform, Gemini.

The government’s recommendations extend beyond structural changes, targeting Google’s business practices. Regulators want Google to license its search index data to competitors, making it easier for rival search engines to compete. They are also pushing for greater transparency in how Google determines advertising rates and measures to protect websites from having their content used in Google’s AI training without permission.

High Stakes for Google

The stakes are monumental for Google, which could see its business model upended. The company’s search engine and advertising empire are projected to generate over $300 billion in revenue this year, making the potential penalties particularly consequential. According to AP News, if Judge Mehta adopts the recommendations, Google would have six months to sell Chrome following the final ruling, a move that could disrupt its longstanding dominance. However, Google is expected to appeal any ruling against it, potentially prolonging a legal battle that has already spanned more than four years.

Read more: Google Allegedly Encouraged Evidence Destruction to Dodge Antitrust Scrutiny: Report

A Changing Antitrust Landscape

The case comes at a time when President Joe Biden’s administration has taken a hardline stance against Big Tech monopolies, with Assistant Attorney General Jonathan Kanter leading the DOJ’s antitrust division and Federal Trade Commission Chair Lina Khan pursuing similar actions. Both officials have worked to challenge the outsized influence of technology giants, blocking business deals and pushing for stronger regulations across the industry.

However, with the upcoming change in administration as President-elect Donald Trump prepares to take office, the DOJ’s aggressive approach could shift. As AP News notes, Trump is widely expected to replace Kanter, potentially altering the course of this case and others targeting tech companies.

What’s Next?

Hearings on the proposed penalties are set to begin in April, with Judge Mehta aiming to deliver a final decision before Labor Day. For now, the DOJ’s recommendations highlight the government’s determination to address Google’s alleged monopolistic practices, with regulators asserting that bold measures are necessary to restore competition.

“The playing field is not level because of Google’s conduct,” the DOJ wrote, stressing the need for remedies that would “deprive Google of these advantages.” Whether these proposed measures will withstand legal challenges or political shifts remains to be seen, but the case underscores the intensifying scrutiny facing the tech industry’s most powerful players.

Source: AP News