The American administrative body contemplates dismantling Google as a single entity.
The United States Department of Justice recently mentioned in a court filing that they might suggest dismantling key sectors of Google, separating Google's search service from Android, Chrome, and the Google Play app store. This action would prevent Google from utilizing platforms like Chrome, Play, and Android to favor Google search and related products over competitors or new entrants, such as AI innovations, in emerging search access points and features.
In a public statement, Google identified the government's proposed action as "extreme," arguing that it could worsen customer experiences by potentially damaging Android and Chrome, hindering AI development, and forcing Google to share user data with competitors, possibly jeopardizing users' privacy.
Google argued that the case revolves around search distribution contracts rather than focusing on the issue at hand. Instead, the government seems to be advocating for a wide-ranging plan that could affect various industries and products, potentially causing unintended consequences for consumers, businesses, and overall U.S. competitiveness.
In August, a judge issued a ruling stating that Google had breached U.S. antitrust law with its search business. The ruling labeled Google a "monopolist," setting the stage for potential modifications to Google's oldest and most critical business and how millions of Americans access online information.
The case centered around the exclusive agreements that Google has invested billions in forming with tech giants, such as Apple, to establish Google as the default search engine on smartphones and web browsers. U.S. District Judge Amit Mehta declared that these deals were anticompetitive.
The case was described as the leading tech antitrust case since the U.S. government's antitrust battle with Microsoft at the start of the new millennium.
Google announced in August that they intended to contest the decision and reiterated their argument that their search engine is consumers' preferred choice due to its superiority. "As this procedure continues, we will remain dedicated to creating products that people find valuable and user-friendly," Kent Walker, Google's Head of Global Affairs, stated in a post on the X platform at the time.
The Department of Justice's recommendation initiates a different procedure to determine the penalties that Google will face. Along with Google's appeal, the entire process could extend for months or even years.
Whatever eventuates for Google may set the stage for potential remedies in other ongoing antitrust cases against tech giants. Google is also grappling with a separate case brought forth by the Department of Justice attorneys and 17 states, who claim that its advertising business is anticompetitive. Amazon, Apple, Meta, and Ticketmaster are also engaged in antitrust legal battles.
In response to the Department of Justice's suggestion, Google's tech team expressed concerns about how dismantling key sectors could impact the development and innovation of their AI services. The government's broad business proposal could potentially disrupt various industries and negatively impact consumer experiences, as highlighted in Google's public statement.
