U.S. Assistant Attorney General Jonathan Kanter speaks concerning the antitrust lawsuit against Live Nation Entertainment during a press conference as Attorney General Merrick Garland and Deputy Attorney General Lisa O. Monaco look on during a press conference on the Department of Justice in Washington, U.S., May 23, 2024. REUTERS/Ken Cedeno
Ken Cedeno | Reuters
The Department of Justice late Tuesday made recommendations for Google’s search engine business practices, indicating that it was considering a possible breakup of the tech giant as an antitrust treatment.
The remedies crucial to “prevent and restrain monopoly maintenance could include contract requirements and prohibitions; non-discrimination product requirements; data and interoperability requirements; and structural requirements,” the department said in a filing.
The DOJ also said it was “considering behavioral and structural remedies that might prevent Google from using products reminiscent of Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, reminiscent of artificial intelligence — over rivals or latest entrants.”
Moreover, the DOJ suggested limiting or prohibiting default agreements and “other revenue-sharing arrangements related to look and search-related products.” That may include Google’s search position agreements with Apple’s iPhone and Samsung devices — deals that cost the corporate billions of dollars a yr in payouts. The agency suggested one option to do that is requiring a “alternative screen,” which could allow users to choose from other search engines like google.
Such remedies would end “Google’s control of distribution today” and ensure “Google cannot control the distribution of tomorrow.”
The recommendations come after a U.S. judge in August ruled that Google holds a monopoly within the search market. That ruling got here after the federal government in 2020 filed the landmark case, alleging that Google has kept its share of the overall search market by creating strong barriers to entry and a feedback loop that sustained its dominance. The court found that Google violated Section 2 of the Sherman Act, which outlaws monopolies.
Kent Walker, Google’s president of worldwide affairs, said the corporate plans to appeal the ruling and highlighted the court’s emphasis on the prime quality of Google’s search products, which the judge also noted in his ruling.
The DOJ also advisable Google make available to competitors its data inside its search index and models, including its AI-assisted search features and its ad rating data. The DOJ can also be considering remedies that might “prohibit Google from using or retraining data that can not be effectively shared with others on the idea of privacy concerns,” in response to the filing.
The recommendations are still removed from being decided.
Judge Amit Mehta said he’ll aim to rule on the remedies by August 2025 and an appeal by Google would likely draw out any final impact potentially years.
In response to the Tuesday filing, Google Vice President of Regulatory Affairs Lee-Anne Mulholland called the DOJ’s recommendations “radical.”
“This case is a couple of set of search distribution contracts,” Mulholland said in a blog post. “Somewhat than deal with that, the federal government appears to be pursuing a sweeping agenda that can impact quite a few industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness.”
She added that “splitting off Chrome or Android would break them — and plenty of other things.”
The probably final result, in response to some legal experts, is that the court will ask Google to dispose of certain exclusive agreements such that it has with Apple. The court may suggest that Google make it easier for users to try other search engines like google, experts told CNBC. Nevertheless, a break-up seems less likely, the experts said.
Within the second quarter, “Google Search & Other” accounted for $48.5 billion in revenue, or 57% of Alphabet’s total revenue. The corporate holds a 90% of search market share.
In a separate antitrust case this week, a U.S. judge issued a everlasting injunction that can force Google to supply alternatives to its Google Play store for downloading apps on Android phones.
A judge in September wrapped a trial for an additional antitrust case brought on by the DOJ — though this one homed in on Google’s ad tech business.
WATCH: Judge orders Google to supply alternatives to its Android app store within the Epic Games trial
