Government Contemplates Breaking Up Google's Core Businesses

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ICARO Media Group
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09/10/2024 14h12

**US Government Considers Breaking Up Google's Core Businesses**

In a historic move reminiscent of the AT&T breakup four decades ago, the US government is contemplating dismantling one of the globe's most significant monopolies: Google. The US Department of Justice (DOJ) made this disclosure in a court filing on Tuesday night, indicating it might propose the separation of Google's search business from its other major products, including Android, Chrome, and the Google Play app store.

The DOJ's filing argues that such a division would prevent Google from leveraging its products like Chrome, Play, and Android to unfairly benefit Google's search services and related features. This would, according to the government, eliminate Google's ability to stifle competitors or emerging search technologies, particularly those involving artificial intelligence.

In response, Google criticized the DOJ's proposal in a blog post, calling it an extreme measure that could deteriorate customer experience, disrupt Android and Chrome functionality, hinder AI innovation, and possibly compel Google to share personal data with competitors, thereby compromising user privacy. "This case is fundamentally about a collection of search distribution agreements," Google stated. "Instead, the government appears to be pursuing an extensive agenda that could affect several industries and products, with considerable unintended repercussions for consumers, businesses, and the competitiveness of the United States."

This recommendation from the DOJ follows a landmark ruling by a federal judge in August, declaring Google in violation of US antitrust laws with its search business practices. Labeling Google a "monopolist," the ruling flagged the need for significant changes in Google’s primary business operations and the way millions of Americans access information online.

The core of this legal battle revolved around exclusive contracts that Google has established with tech giants like Apple, designating it as the default search engine on smartphones and web browsers. Judge Amit Mehta determined these deals were anticompetitive, setting a precedent likened to the significant antitrust case against Microsoft at the turn of the millennium.

Despite the ruling, Google announced its intention to appeal the decision, reiterating its standpoint that its search engine's popularity stems from its superior quality. "As this process unfolds, we will continue to focus on delivering products that are helpful and easy to use," reaffirmed Kent Walker, Google's president of global affairs, in a post on X in August.

The DOJ's recent recommendation initiates a separate proceeding to decide the penalties Google will face, while Google's appeal might extend the case duration to months or even years. The outcome of this case could potentially influence resolutions in other ongoing antitrust lawsuits against tech behemoths. Beyond this case, Google faces an additional antitrust lawsuit involving its advertising business, brought by DOJ attorneys and 17 states. Other tech giants like Amazon, Apple, Meta, and Ticketmaster are also currently embroiled in antitrust legal challenges.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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