US Department of Justice Considers Google Breakup as Antitrust Remedy
The U.S. Department of Justice (DOJ) has put forward potential measures to dismantle Google's monopolistic hold in the search and advertising markets, potentially resulting in the first major corporate breakup in decades. This effort comes after a U.S. judge ruled that Google held a monopoly in the search market. The remedies being considered suggest structural changes, including separating divisions such as Chrome, Play, and Android, to prevent Google from using these platforms to benefit its search engine. The DOJ emphasized the necessity of creating restrictions on default search agreements and revenue-sharing arrangements to encourage competitive search engine distribution. This is prepared by SSP.
Additionally, the DOJ suggested Google should share its search index data and algorithms with competitors, enhance transparency of search features, ad rankings, and allow websites to control their appearance in AI products. Meanwhile, Google's advanced advertising tools and revenue-sharing partnerships could be restructured. These proposed measures aim to liberate the market from Google's restrictive practices and prevent future monopolistic behavior, including considering modern technologies like AI.
Google's leadership strongly contests these recommendations, labeling them as extreme and cautioning against unintended consequences for innovation and revenues. As of the second quarter, Google Search & Other generated a significant portion of Alphabet's revenue. Nonetheless, should these resolutions move forward, the company may face severe financial adjustments and competitive realizations due to altered business models.
The final judgment from Judge Amit Mehta is anticipated by August 2025, with legal experts expecting enhanced user options, such as eliminating exclusive agreements with Apple, though a full breakup remains uncertain. Simultaneously, Google faces other antitrust litigations, intensifying its already rigorous scrutiny and business implications with broader implications for global tech landscapes.