U.S. regulators are pushing for a major shake-up of Google, calling for the company to be broken up to prevent its dominant search engine from stifling competition. A federal court recently ruled that Google had maintained an abusive monopoly for over a decade, prompting the Justice Department to seek tough penalties.
In a 23-page document filed on Wednesday, the Justice Department proposed that Google sell its leading Chrome web browser and restrict its Android operating system to prevent it from unfairly promoting its search engine. The recommended breakup and changes come in the wake of a ruling by U.S. District Judge Amit Mehta in August, which deemed Google a monopolist.
The push for these drastic measures highlights the seriousness with which the Biden administration’s regulators are treating the issue. However, the case could face changes under the next administration, with President-elect Donald Trump potentially appointing officials who may be less aggressive in their approach. Court hearings for Google’s penalty are set to begin in April, with Judge Mehta aiming to make a final ruling before Labor Day.
If Mehta agrees to the Justice Department’s recommendations, Google is almost certain to appeal, which would likely delay the case further. The proposed penalties include a spinoff of Google’s Chrome browser and further restrictions on its Android software, as well as a ban on deals that make Google’s search engine the default on Apple’s iPhones and other devices.
Additionally, regulators are calling for Google to share data it collects from users’ search queries with competitors, allowing them a better chance to compete. These moves could disrupt Google’s $300 billion business, which has contributed significantly to the profits of its parent company, Alphabet Inc.
The Justice Department argues that Google’s actions have created an unfair advantage that has skewed the playing field, with the company benefiting from illegal gains. “The remedy must close this gap and deprive Google of these advantages,” the department said in its filing.
There’s still a possibility that the Justice Department could scale back its efforts, particularly if Trump replaces Jonathan Kanter, who was appointed by Biden to head the antitrust division. Although the case was originally filed during Trump’s first term, Kanter has overseen the trial and led the charge against Big Tech, including cases against companies like Apple. Trump has expressed concerns that breaking up Google could harm the company, but he has not offered an alternative plan.
The recent filing marks the Justice Department’s final chance to propose measures needed to restore competition in the search industry. It follows an earlier outline of potential penalties and has raised questions about whether the proposed breakup extends beyond the scope of the original trial and Mehta’s ruling.
One key issue addressed in Mehta’s decision was Google’s multibillion-dollar deals to keep its search engine as the default option on major platforms, like Apple’s iPhone. The Justice Department has proposed measures to stop these deals, which Google spends more than $26 billion annually to maintain.
However, it remains uncertain whether Judge Mehta will accept the idea of separating Chrome from Google or unbundling Android from the company’s other services. Some experts have compared this case to Microsoft’s antitrust case from 25 years ago, in which a court initially ordered a breakup of the company for using its Windows operating system to suppress competition. However, that decision was overturned on appeal, and experts believe that precedent could influence Mehta’s approach to the Google case.
