U.S. Justice Department Considers Breaking Up Google to End Search Monopoly

(Analysis) The US government is exploring the possibility of splitting up Google to end its online search monopoly. The Department of Justice (DoJ) has submitted a potential pro-competition action this week, dealing another blow to the tech giant.

This development follows a judge’s August ruling that Google violated US antitrust law, labeling the company a “monopolist.”

A court document detailing possible sanctions reveals that prosecutors are “considering behavioral and structural remedies.”

These measures aim to prevent Google from using products like the Chrome browser, Play Store, and Android operating system to give its search engine an edge over competitors or newcomers.

The DoJ might also try to force Google to share search data with rivals. Additionally, they may restrict Google’s ability to use search results for training new generative AI models and products.

In the 32-page document, the Justice Department states that Google has controlled the most popular distribution channels for over a decade. This control has left rivals with little to no incentive to compete for users.

DoJ’s Antitrust Case Against Google

The DoJ argues that fully repairing these damages requires not only ending Google’s current distribution control but also ensuring it cannot control distribution in the future.

The document includes an initial solution proposal and moves the trial into a second phase. Judge Amit Mehta will determine the sanctions to be imposed on Google during this phase.

In August, Mehta ruled that Google spent billions of dollars on exclusive agreements to maintain what he deemed an illegal dominance over searches.

Google responded by calling the allegations “radical and far-reaching.” Google holds over 90% of the online search market.

This dominance has made its parent company, Alphabet, one of the world’s most valuable companies. A potential breakup would transform this market.

Despite these revelations in the United States, Alphabet’s stock has shown little effect. This year, its shares have risen by 19%, giving it a market value of $2 trillion, the fourth largest for a US-listed company.

The Google case could potentially be the Justice Department’s biggest antitrust victory since a judge ordered Microsoft’s breakup 24 years ago for crushing competition.

However, that decision was overturned on appeal a year later. The Google case now represents a second chance for the DoJ to fundamentally challenge a major tech company’s dominance in a key sector.

As part of the trial’s second phase, the DoJ and Google are expected to submit their final sentence proposals. They will also provide their witness lists between November 20 and December 20, respectively.

The judge has scheduled hearings for remedy requests in April and aims to issue a decision by August 2025. Google has promised to appeal the decision to the US Supreme Court, which could take years for a final ruling.

In its lawsuit, the DoJ identified four areas within the company that need competition-focused solutions: search distribution and revenue sharing; generation and display of search results; advertising scale and monetization; and data collection and use.

Proposed Remedies and Future Implications

Prosecutors suggested that remedies could include banning exclusivity contracts. This includes the $20 billion Google pays annually to Apple to be the default search engine for the Safari browser.

They also suggested imposing “non-discrimination measures” on Google products like the Android operating system and Play Store.

The DoJ is also considering requiring Google to share its vast dataset used to improve search ranking models, indexes, and advertising algorithms. Prosecutors argue that this data has been illegally accumulated.

To address any resulting data privacy concerns, Google “could be prohibited from using or retaining data that cannot be effectively shared with third parties,” according to the document.

Addressing AI Implications and Big Tech Rivalries

The DoJ also acknowledged the “disruptive” impact that artificial intelligence (AI) would have on online searches. Prosecutors are concerned that Google might “leverage its monopoly power” to fuel its AI capabilities.

They want websites to be able to opt out of being used to train Google’s AI models or from inclusion in its AI-generated summaries.

The lawsuit argued that Google’s dominance over text search ads needed to be addressed by reducing barriers for potential rivals. It also suggested licensing its ad feed to third parties, independent of search results.

The trial’s second phase will be a critical test for Jonathan Kanter, who inherited the case. As head of the DoJ’s antitrust unit, he has implemented a tougher enforcement policy over the last three years.

Kanter has sued Apple and has a second case pending against Google’s advertising technology business. Amazon and Meta are also in the crosshairs of big tech critic Lina Khan, chair of the Federal Trade Commission, with separate cases against the companies.

This request comes shortly after other legal defeats for Alphabet. On Monday, October 7, a California judge ordered the company to open its Android operating system to rivals.

This will allow them to create their own app marketplaces and payment systems to compete with Google Play. Google said it would appeal the verdict.

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