US Justice Department Proposes Breakup of Google to Curb Monopolistic Power

The U.S. Department of Justice (DOJ) has proposed some measures aimed at dismantling sections of the business empire of Google, pointing to what could be the first corporate breakup in the U.S. in four decades. 

The DOJ, alongside a coalition of state attorneys general, outlined these suggestions in a legal submission, addressing issues about Google’s take-over in the search and online advertising industries.

Following a ruling in August that found Google guilty of monopolising the search engine market, the DOJ’s proposals target various facets of Google’s operations. 

These proposals include structural and behavioural remedies, with the potential to separate key Google services such as its Chrome browser, Play Store, and Android operating system. The department aims to restrict Google’s influence not just in search and advertising but also in the field of artificial intelligence.

In the area of search distribution, one of the central remedies involves limiting Google’s agreements with device manufacturers, which currently ensure that Google’s search engine is pre-installed and set as the default on numerous smartphones and browsers. 

The DOJ argues that this has contributed to Google maintaining its overwhelming market share, processing 90% of all U.S. internet searches. To level the playing field, the department proposes introducing educational programmes to inform consumers about alternative search engines.

Further recommendations include mandating the sharing of Google’s search index and algorithms with competitors, enforcing transparency in search result rankings and advertising systems, and allowing websites to opt out of being used in AI training. 

This is intended to prevent Google from leveraging non-public data to maintain its dominance and to support emerging rivals in both search and AI-related fields.

In the advertising sector, the DOJ proposes scaling back Google’s ad services, which have become increasingly reliant on AI. One suggestion involves licensing Google’s ad feed separately from its search results, providing more transparency for advertisers.

Google, unsurprisingly, responded by calling these proposals “drastic” and warned that they could harm innovation. The tech giant defended its search engine’s position, claiming that it owes its success to quality and user preference, not anti-competitive practices. 

The company also said that such remedies could negatively impact the growing AI sector, arguing that government interference could limit innovation in critical industries.

The Justice Department’s stand comes with growing investigations of large tech firms in the U.S. A separate case earlier this week saw a U.S. judge ordering Google to open its Play Store to greater competition, while other tech giants like Meta, Amazon, and Apple also face antitrust lawsuits. 

While this case against Google is a step towards reigning in Big Tech, the legal issue is far from over. Google has stated its intention to appeal and has until December to submit its own remedy proposals. 

This Google breakup case, however, may not be the end of the tech giant’s legal conflicts. The DOJ remains focused on addressing Google’s alleged monopolistic practices, not just in the U.S. but globally, with similar cases being considered in Europe.