Sunday, December 22, 2024

US government considers a breakup of Google | CNN Business

Must read



CNN
 — 

For the first time since AT&T was dismantled into Baby Bells four decades ago, the US government is weighing the breakup of one of the world’s largest and most consequential monopolies: Google.

The US Department of Justice in a court filing Tuesday night said it may recommend dismantling Google’s core businesses, separating Google’s search business from Android, Chrome and the Google Play app store.

“That would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants,” the government said in its court filing.

Google, in a blog post, called the government’s potential plan “radical,” arguing it could make the customer experience worse: Google said it could “break” Android and Chrome, hamper AI innovation and force the company to share personal information with competitors, undermining people’s privacy.

“This case is about a set of search distribution contracts,” the company said in its blog post. “Rather than focus on that, the government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness.”

The Justice Department’s recommendation comes after a federal judge ruled in August that Google had violated US antitrust law with its search business. The ruling, in which the judge called Google a “monopolist,” set the stage for changes to Google’s oldest and most important business and for how millions of Americans get information online.

The case centered on the exclusive contracts that Google has spent billions of dollars to form with other tech companies, including Apple, to make it the default search provider on smartphones and web browsers. US District Judge Amit Mehta ruled that those deals were anticompetitive.

The case had been described as the biggest tech antitrust case since the US government’s antitrust showdown with Microsoft at the turn of the millennium.

Google said in August that it planned to appeal the decision and repeated an argument it had made in court that its search engine is the most popular among consumers because it is the best. “As this process continues, we will remain focused on making products that people find helpful and easy to use,” Kent Walker, Google’s president of global affairs, said in a post on X at the time.

The Justice Department’s recommendation kicks off a separate proceeding to determine what penalties Google will face. Together with Google’s appeal, the entire process could take months or even years to play out.

Whatever ultimately happens to Google could set the stage for potential remedies in other, ongoing antitrust cases against tech giants. Google faces a separate case brought by DOJ attorneys, along with 17 states, who allege that its advertising business is anticompetitive. Amazon, Apple, Meta and Ticketmaster are also engaged in antitrust legal battles.

Latest article