news-09102024-061818

The U.S. Department of Justice is considering the possibility of breaking up Google as an antitrust remedy after a recent ruling confirmed the tech giant’s monopoly in the search market. The Department made recommendations for Google’s search engine business practices, suggesting various remedies to prevent and restrain monopoly maintenance.

The DOJ mentioned that potential remedies could include contract requirements, non-discrimination product requirements, data and interoperability requirements, as well as structural requirements. They are also looking into behavioral and structural remedies that would prevent Google from favoring its search-related products and features over rivals or new entrants using products like Chrome, Play, and Android.

Google’s president of global affairs, Kent Walker, stated that the company plans to appeal the ruling, emphasizing the court’s recognition of the high quality of Google’s search products. The court’s ruling highlighted Google’s monopoly in the search market, with the company holding 90% of the market share.

Legal experts predict that the court may request Google to eliminate exclusive agreements, such as those with Apple, and make it easier for users to try other search engines. However, the experts believe that a complete break-up of Google is less likely.

In the second quarter, Google Search & Other generated $48.5 billion in revenue, accounting for 57% of Alphabet’s total revenue. Despite the recommendations from the DOJ, the final decisions are yet to be reached. Judge Mehta aims to rule on the remedies by August 2025, and Google is expected to appeal, potentially prolonging the final impact for years.

In another antitrust case, a U.S. judge issued a permanent injunction requiring Google to provide alternatives to its Google Play store for downloading apps on Android phones. Additionally, a separate antitrust case focusing on Google’s ad tech business recently concluded.

This situation is still developing, and updates will be provided as new information becomes available.