US weighs Google breakup in historic big tech antitrust case
The effort is the most significant move to rein in a major tech company
The US Justice Department is considering asking a federal judge to force Google to sell off parts of its business in what would be a historic breakup of one of the world’s biggest tech companies.
Antitrust enforcers are weighing a breakup to mitigate the Alphabet Inc. business’s dominance in search, the agency said in a court filing on Tuesday. Judge Amit Mehta could also order Google to provide access to the underlying data it uses to build its search results and artificial intelligence products, it said.
The Justice Department “is considering behavioural and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features,” the agency said.
The 32-page document lays out a framework of potential options for the judge to consider as the case moves to the remedy phase. The agency said it will provide a fuller proposal on remedies next month.
The effort is the most significant move to rein in a major tech company over illegal monopolization since Washington unsuccessfully sought to break up Microsoft Corp. two decades ago. The Justice Department and the US Federal Trade Commission have targeted Big Tech dominance, scrutinizing deals and investments and accusing some of the country’s most powerful companies of illegally dominating markets.
Antitrust enforcers said Google gained scale and data benefits from its illegal distribution agreements with other tech companies that made its search engine the default option on smartphones and web browsers. Google’s Android business encompasses the operating system used on smartphones and devices as well as apps.
The Justice Department also said it may seek a requirement that Google allow websites more ability to opt out of its artificial intelligence products. The agency said it’s considering proposals related to Google’s dominance over search text ads, such as requirements that the company provide more information and control to advertisers over where their ads appear. The department may also request that Google be restricted from investing in search competitors or potential rivals.
Google criticized the Justice Department’s filing as “radical,” saying it would have “significant unintended consequences for consumers, businesses, and American competitiveness.” The DOJ’s proposals go “well beyond the legal scope of the Court’s decision about Search distribution contracts,” Lee-Anne Mulholland, Google’s vice president of regulatory affairs, wrote in a blog post.
Antitrust pressure from multiple cases is building against Google. Mehta, who ruled this summer that Google broke antitrust laws in both online search and search text ads markets, plans to hold a trial on the proposed remedy next spring and issue a decision by August 2025. Google has already said it plans to appeal Mehta’s decision but must wait until he finalises a remedy before doing so.
European Union watchdogs similarly touted the option of a breakup of Google’s business in order to appease antitrust concerns last year. The bloc’s competition chief Margrethe Vestager said that “divestiture is the only way” to settle worries over how the company favors its own services to the detriment of ad tech rivals, advertisers and online publishers. That EU case - which could come to a final decision by the end of this year - marked the latest escalation in a long-running saga that’s already led to a trio of EU penalties totalling more than €8bn ($8.8bn) for abuses across other Google services.
Bloomberg
