US targets Google for profound business overhaul after monopoly ruling
Google's headquarters, the Googleplex in Mountain View, California. (Wikipedia Commons)
The U.S. Department of Justice (DOJ) has unveiled plans to push for sweeping changes to Google’s business practices following a ruling that found the tech giant guilty of maintaining an illegal monopoly.
The announcement marks a significant shift in how U.S. regulators approach major tech companies’ power. This move could potentially lead to the breakup of one of the world’s largest corporations.
In August, U.S. District Court Judge Amit Mehta ruled that Google had unlawfully monopolized the online search market. The DOJ, in response, is now considering remedies that could include forcing Google to divest key assets such as its Android operating system or Chrome web browser, or prohibiting default agreements with companies like Apple that give Google exclusive search engine rights.
This marks the most aggressive stance the DOJ has taken against a tech company in decades. The last time U.S. regulators came close to such drastic action was in their effort to break up Microsoft more than 20 years ago. While that attempt ultimately failed, the current administration’s willingness to consider similar measures against Google suggests a renewed commitment to curbing the power of Silicon Valley giants.
Google dismissed the proposed remedies as “radical” in a blog post, arguing that the DOJ’s approach extends far beyond the core issues raised in the case.
Among the most contentious practices under scrutiny is Google’s use of lucrative agreements with smartphone manufacturers to make its search engine the default option on most devices. The DOJ argues that these deals, particularly those with Apple, have allowed Google to gain and maintain control over a staggering 90% of the U.S. online search market as of 2020, with an even larger share – 95% – on mobile platforms.
The DOJ’s proposals also include opening up Google’s search data to competitors, a move aimed at creating a more level playing field. The government’s push for these changes comes as part of a broader strategy to reduce the monopolistic dominance of major tech companies, which have largely escaped such scrutiny since the Microsoft case.
This case, which centers around Google’s search engine dominance, is just one in a series of legal challenges the company is facing in the U.S. It also stands accused of antitrust violations related to its advertising technology, and recently lost a separate lawsuit brought by Epic Games over its Google Play store practices.
The Justice Department’s current approach to Google is part of a “high-level framework” aimed at determining how to enforce the court’s decision. A more detailed plan is expected to be submitted by November, with both sides scheduled to argue their positions in a special hearing in April.
Google is widely expected to appeal any ruling that imposes significant changes, setting the stage for a legal battle that could take years to resolve and may ultimately reach the U.S. Supreme Court.
The push for regulatory intervention comes as tech giants face increasing scrutiny in the U.S. and abroad, following years of complaints about their market dominance. Although tech companies have consistently denied wrongdoing, regulators have begun to mount a more aggressive offensive, signaling that a new era of antitrust enforcement may be on the horizon.
This renewed focus on monopolistic practices is a stark departure from the approach taken over the past two decades, when U.S. regulators largely left tech companies to their own devices. The DOJ’s case against Google could become a watershed moment in the push to rein in the power of major corporations in the digital age.
