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16 August 2024

US Weighs Google Breakup After Antitrust Ruling

The Justice Department explores potential breakup and regulatory measures against Google's dominance in online search markets

The U.S. Department of Justice (DOJ) is contemplating breaking up Google following a significant court ruling stating the company maintains a monopoly over online search. This potential breakup would mark the first major government move to dismantle a tech giant for illegal monopolization since the unsuccessful efforts against Microsoft two decades ago.

Sources reveal various options are being discussed, including requiring Google to share data with competitors and implementing measures to level the playing field for artificial intelligence products. Officials are also exploring the possibility of splitting off parts of Google, such as its Chrome browser or the Android operating system.

Google's dominance raises concerns about competition, with regulators considering alternatives to breaking up the company. One proposed approach involves mandatorily making Google's data accessible to rival companies.

Discussions within the government have even suggested prohibiting Google from arranging deals to make its search engine the default choice on certain devices, such as iPhones. These conversations include consultations with various companies and experts to formulate proposals to reduce Google's market power.

Other big tech firms like Meta Platforms, Amazon, and Apple have also faced scrutiny by U.S. regulators in recent years due to claims of illegal monopolization. This legal scrutiny highlights growing tensions around the power of big tech.

With the DOJ's current discussions, the potential for unprecedented regulatory actions looms. The option to break off segments of Google is just one of the several possibilities under consideration as officials work to shape their response.

According to The New York Times, options may involve not just breaking off parts of Google's business but also addressing how it dominates the search engine market fundamentally. They report the agency is evaluating remedies to suggest to federal judges amid these antitrust discussions.

Kamyl Bazbaz, senior vice president for public affairs at DuckDuckGo, notes the challenges faced by his company due to Google's status as the default search engine. He argues this situation has "led to the market being pretty much frozen," stifling competition.

DuckDuckGo has proposed several reforms, including preventing Google from paying companies just to be the default search engine. Bazbaz believes this would help create more competitive dynamics within the online search market.

There's also hope for more user choice, like implementing options during device setup asking which search engine users would prefer. Bazbaz suggests potentially separating Google’s Android and Chrome divisions could make the market less constricted.

Rebecca Haw Allensworth, who teaches antitrust law at Vanderbilt University, suggests judicial breakups are quite rare. She explains, "You know, courts don’t like to play CEO," meaning such vast changes would require detailed oversight.

She points out other viable options exist, such as creating choice screens during new device setups, allowing consumers to make informed choices about which search engine to use. This approach could drive more competition and promote user preference.

A spokesperson for the DOJ said the department is still contemplating its next steps, emphasizing no final decisions have been reached. Meanwhile, Google has yet to comment publicly on these developments.

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