The U.S. government announced that it may ask a judge to compel Alphabet, the parent company of Google, to divest key parts of its business.
This move follows a ruling earlier this year that found Google to be maintaining an illegal monopoly in the online search market, where it processes approximately 90 percent of U.S. internet search.
The global internet search market is expected to reach $507.37 billion by 2032, says industry reports. The internet search portals market size is expected to reach $295.62 billion in 2024. Revenue of Google was $305 billion in 2023.
Justice Department’s proposed remedies could reshape how customers access online, potentially reducing Google’s revenue and opening up opportunities for its competitors. “Remedying these harms requires not only ending Google’s control of distribution today, but also ensuring Google cannot control the distribution of tomorrow,” Justice Department said.
Proposed Changes
Among the potential divestitures, the government is considering requiring Google to separate its Chrome browser and Android operating system from its search engine operations.
Prosecutors may also seek to eliminate Google’s substantial payments to manufacturers that ensure its search engine remains pre-installed as the default on new devices. In 2021 alone, Google spent $26.3 billion on such agreements with companies, including tech giant Apple, Reuters news report said.
As part of its efforts to prevent Google’s dominance from extending into AI, the Justice Department said it may seek to make available to rivals the indexes, data and models it uses for Google search and AI-assisted search features.
Other orders prosecutors may seek include restricting Google from entering agreements that limit other AI competitors’ access to web content and letting websites opt out of Google using their content to train AI models.
Google has responded to the government’s proposals, labeling them as “radical” and asserting that they “go far beyond the specific legal issues in this case.” The company maintains that its search engine’s success stems from its quality and claims it faces robust competition from other platforms, including Amazon and various alternative search engines.
Legal Pressure and Broader Implications
The pressure on Google is mounting amid various legal challenges, including a recent ruling that mandates the company to open its app store, Google Play, to increased competition by allowing rival Android apps. The Justice Department is also pursuing a separate case aimed at breaking up Google’s web advertising business.
To further curb Google’s influence in emerging sectors, such as artificial intelligence, the Justice Department may propose making the data, indexes, and models used in Google’s search and AI functionalities available to competitors. Other potential measures include preventing Google from entering agreements that limit access to web content for AI competitors and allowing websites to opt-out of Google using their content for AI training.
Industry Reaction
Google has voiced concerns that these AI-related proposals could hinder innovation in the tech industry. In a statement, the company warned, “There are enormous risks to the government putting its thumb on the scale of this vital industry — skewing investment, distorting incentives, hobbling emerging business models — at precisely the moment that we need to encourage investment.”
As the Justice Department prepares to file a detailed proposal by November 20, Google will have the opportunity to suggest its own remedies by December 20. This case represents a significant moment for antitrust enforcement in the tech industry, with broader implications for other major players like Meta Platforms, Amazon, and Apple, which are also facing scrutiny for alleged monopolistic practices.
Support from Competitors
Some of the proposed measures to break up Google have received backing from smaller competitors, including the review site Yelp and rival search engine DuckDuckGo. Yelp, which has previously sued Google, argues that spinning off services like Chrome and AI capabilities should be seriously considered to foster a more competitive marketplace.
Baburajan Kizhakedath