The U.S. Department of Justice says in a new court filing that it may recommend breaking up Google (GOOG, GOOGL) as an antidote to unhealthy competition in the search engine market, as the U.S. government This shows how seriously they are working to curb the spread of the virus. .
In a 32-page document, Justice Department lawyers outlined a framework of options for D.C. District Court Judge Amit Mehta to consider, including: It also includes behavioral and structural remedies that prevent you from using products such as Chrome, Play, and Android.” ”
“The Justice Department’s radical and sweeping proposals risk harming consumers, businesses, and developers,” Google said in a blog post.
Shares of Google’s parent company Alphabet fell more than 1% on Wednesday.
The proposal would be the first step in dismantling the tech empire since the Justice Department worked with Microsoft (MSFT) to try to dismantle it more than two decades ago.
The case, which the Justice Department cited in a court filing Tuesday, led to a settlement in 2002 that opened the door to broader competition in the Internet browser software market.
The Justice Department’s move also comes as part of a broader effort by the Biden administration to curb what it deems anticompetitive behavior in many industries, which currently face antitrust lawsuits from the Justice Department and other Washington regulators. It would send a signal to other tech giants.
The administration has already alleged anticompetitive behavior against tech giants Apple (AAPL) and Amazon (AMZN), and argued that Microsoft’s acquisition of gaming giant Activision Blizzard would create a monopoly in the gaming market.
A lawsuit against Google targeting the company’s dominance in search resulted in a landmark ruling in August, with Washington, D.C. District Court Judge Amit Mehta siding with the Justice Department, ruling that Google has no control over the online search engine market. It was concluded that the search text advertising market was illegally monopolized.
Mehta concluded that Google’s agreements with browser providers and devices running Google’s Android operating system are constraining competitors from entering and growing the market.
It will now be up to Mehta to decide what should happen in another “remedy” phase of the trial, likely to begin in 2025.
The Justice Department plans to submit a more detailed document outlining these remedies by November 20th. But the 32-page document filed late Tuesday lays out some focus beyond forcing Google to sell some of its business.
Judge Amit Mehta of the United States District Court for the District of Columbia. (Mark Wilson/Getty Images) (Mark Wilson via Getty Images)
One involves an agreement that protects Google’s search engine as the default for Internet browsers and Internet-connected devices that use Google’s Android operating system.
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Google pays as much as $26 billion a year to maintain its position in mobile devices such as Apple (AAPL) and Samsung smartphones.
To prevent further harm, Justice Department lawyers are seeking to limit Google’s use of agreements to use Chrome, Play, and Android and “search and other revenue-sharing agreements related to search” to favor Google Search. He said he could ask for restrictions or termination. Related products. With or without the use of a selection screen. ”
The Justice Department could also ask a judge to force Google to share data it uses to improve its search algorithms with competing browsers and search providers, limiting its dominance over search text ads. .
The Justice Department suggested the justices consider preventing Google from illegally monopolizing search, search text advertising, and related markets.
It could ask a judge to force websites to “opt out” of “any artificial intelligence product owned by Google.”
The Justice Department said in new court documents that it is considering breaking up Google, among other things, as a potential remedy in the landmark antitrust case. (Jakub Porzycki/NurPhoto via Getty Images) (NurPhoto via Getty Images)
Google rejected the Justice Department’s proposal.
“We believe today’s blueprint goes far beyond the legal scope of court rulings on search distribution agreements,” LeeAnne Mulholland, Google’s vice president of regulation, said in a blog post.
Google has promised to appeal. And Judge Mehta could put an order to change Google’s actions on hold while he challenges the ruling in the Washington, D.C., Circuit Court of Appeals.
If Google is found not to have violated the appellate law, the judge would lose the right to impose relief.
And even if Google fails and is ordered to change its behavior, Judge Mehta could later adjust the order to better ensure competition is restored.
“This is going to take time,” former FTC Commissioner Mozelle Thompson told Yahoo Finance on Wednesday.
“It’s hard to break up. This is a rare treatment and it doesn’t happen very often,” he added.
Google faces antitrust problems on other fronts as well. The company is currently defending itself in a separate lawsuit from the Justice Department alleging a monopoly over technology used to buy and sell online advertising.
And earlier this week, another federal judge ordered Google to open its app store to the public as part of a settlement of a lawsuit brought by Epic Games.
In a court filing on Tuesday, the Justice Department cited the ruling, which outlined breaking up Google as one possible remedy, noting that the judge in the Epic Games case said the remedy was “to combat network effects.” He pointed out that the government should “bury the outer moat.”
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