DOJ announces plans to compel Alphabet's Google due to illegal monopoly in online search
Date
10/13/2024 8:36:28 AM
(MENAFN) On Tuesday, the Department of Justice (DOJ) announced that it may seek to compel Alphabet's Google to divest certain segments of its business, alleging that these have contributed to maintaining an illegal monopoly in online search. A federal judge had previously ruled in August that Google has established an unlawful monopoly in internet searches, with over 90 percent of searches being processed through its platform. The DOJ's potential remedies could fundamentally alter how Americans access information online, significantly reducing Google's revenue and creating opportunities for its competitors to gain market share.
The DOJ emphasized that fully addressing the harms caused by Google's monopoly necessitates not only terminating its current control over search distribution but also preventing the company from exerting similar control in the future. Among the proposed actions, the DOJ may request the court to mandate that Google divest its Chrome browser and Android operating system. Additionally, it might seek to halt Google's financial agreements that ensure its search engine is pre-installed or set as the default on new devices, along with a requirement for Google to share search data with competing providers.
Moreover, prosecutors indicated a focus on curbing Google's influence in the rapidly evolving field of artificial intelligence (AI). This could involve restrictions on Google's ability to enter into agreements that would limit access to content for its AI rivals. The DOJ is also looking to establish provisions allowing websites to opt out of having their content used by Google to train its AI models, further promoting fair competition in this emerging market.
In response to the DOJ's proposals, Google criticized the government’s approach in a blog post, arguing that the agency appears to be pursuing a broad agenda that could significantly affect multiple industries and products. The company expressed concern that these actions could lead to unintended consequences for consumers, businesses, and overall American competitiveness. Google has historically made substantial payments to companies like Apple and other device manufacturers—amounting to USD26.3 billion in 2021—to ensure that its search engine remains the default choice on smartphones and web browsers, a strategy that has helped it maintain its dominant market position.
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