Wednesday, October 16, 2024

DOJ Proposes Google Breakup

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The U.S. Justice Department has indicated that it may recommend breaking up Google as a remedy to address the lack of healthy competition in the search engine market. This move signals the government’s willingness to take drastic measures to rein in the power of Big Tech.

The DOJ has outlined a framework of options for the D.C. District Court Judge Amit Mehta to consider, including “behavioral and structural remedies” that would prevent Google from using its products, such as Chrome, Play, and Android, to advantage its search engine. Google has pushed back against these proposals, arguing that they “risk hurting consumers, businesses, and developers.”

The case against Google targets its dominance in the search and search text advertising markets. In a landmark decision, Judge Mehta sided with the DOJ, concluding that Google illegally monopolized these markets through its agreements with browser providers and devices powered by its Android operating system. The DOJ is now expected to provide a more detailed document by November 20th outlining potential remedies, which may include limiting or terminating Google’s use of contracts that secure its search engine as the default, forcing Google to share data with rival browsers and search providers, and blocking the company from illegally monopolizing related markets.

The potential breakup of Google is a significant development, as it would mark the first time the Justice Department has taken such a drastic step against a tech giant since its case against Microsoft over two decades ago. While breakups are considered an unusual remedy, the DOJ’s actions reflect the broader effort by the Biden administration to rein in anticompetitive behavior across various industries, including the tech sector.

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