Google facing breakup as U.S. court rules monopolistic practices
U.S. authorities are considering filing a request to break up Google after a court found the company guilty of illegal monopolistic practices in search engines, Bloomberg and The New York Times report. Possible solutions include forcing the company to sell the Android system or the Chrome browser.
14 August 2024 20:54
According to Bloomberg, breaking up the tech giant is just one—and the most radical—option among measures to reduce Google's dominance. Others include forcing the company to share data with competitors and mechanisms to prevent gaining an unfair advantage in artificial intelligence.
The federal prosecutor will also ask for a ban on exclusive contracts that Google has made, for example, with Apple, to ensure that its search engine remains the default option for users.
Android or Chrome to be sold?
These contracts were one of the reasons why a federal court in Washington, D.C., in a landmark ruling, found Google guilty of illegally exploiting and maintaining a monopolistic position in the search engine and online advertising market, ruling, among other things, that it harms consumers and stifles innovation.
The court still needs to decide on the penalty and corrective measures. The U.S. Department of Justice, along with several state attorneys, brought the lawsuit against Google, has until September 4 to present its proposed solutions, and the hearing will take place on September 6 at 2:00 p.m. ET.
According to The New York Times, among the options being considered by the federal prosecutor is forcing Google to sell the part of the company responsible for the Android operating system or the Chrome browser. Such a scenario would not be the first case in the history of antitrust proceedings.
In the last case of such significant importance—against Microsoft 20 years ago—the court initially ordered the company to sell part of the empire. However, the appellate court reversed this ruling. However, as noted by the NYT, the ruling still had long-term effects, reducing the dominance of the corporation and allowing competitive firms—such as Google—to develop.