Following a recent court ruling that found Google guilty of illegally monopolizing the online search market, the DOJ is considering various measures to restore competition, including a potential breakup of the tech giant.
Bloomberg reports that the DOJ is exploring the possibility of dismantling Google, marking the first significant attempt to break up a company for monopolization since the failed efforts against Microsoft two decades ago.
Sources familiar with the discussions indicate that the DOJ is also considering less drastic measures, such as requiring Google to share more data with competitors and implementing safeguards to prevent the company from leveraging an unfair advantage in AI. Regardless of the approach, the government is expected to push for a ban on the exclusive contracts central to its case against Google.
If a breakup is pursued, the DOJ is likely to target Google’s Android operating system and Chrome browser for divestment, and may also consider forcing the sale of AdWords, the company’s platform for selling text advertising.
These deliberations follow Judge Amit Mehta’s August 5 ruling, which concluded that Google illegally monopolized the online search and search text advertising markets. Google plans to appeal the decision, but Mehta has directed both parties to start preparing for the case’s next phase, which will involve the DOJ’s proposals for restoring competition, potentially including a breakup.
For any breakup plan to proceed, it must be approved by Mehta, who would then oversee its implementation. A breakup of Google would represent the most significant dismantling of a U.S. company since the breakup of AT&T in the 1980s.
Judge Mehta’s ruling found that Google coerces device makers into agreements that mandate the installation of its apps, such as Gmail and the Google Play Store, and require its search widget and Chrome browser to be pre-installed in a way that prevents removal. This arrangement hinders competition from other search engines. Additionally, the ruling determined that Google monopolized search text ads, sold through Google Ads (formerly AdWords), which generate approximately two-thirds of Google’s revenue, totaling over $100 billion in 2020.
