US takes first steps against Google monopoly: ‘Breakup is among the options’
The US Department of Justice is considering requiring Google to sell certain parts if it wants to maintain its position as the Undisputed Champion of Search.
Bloomberg news agency reports that the United States wants to do something about Google’s monopoly position. In doing so, the US government is responding to a recent ruling by a judge who ruled two months ago that Google is behaving like a monopolist in Internet searches.
That ruling showed that 90% of all online searches in the United States in 2020 were conducted using Google. On smartphones, the company controlled as much as 95% of the market.
The 32-page document outlined a framework of possible measures the court could impose on Google. The Department of Justice (DoJ) announced in advance that it will come up with a more comprehensive proposal for remedies next month – by 20 November at the latest.
The DoJ announced in a document to the federal court on Tuesday in advance that it is considering proposing to Google to sell part of its business. “We may also ask the court to require the tech giant to grant other companies access to the data it uses for its search engine and to develop AI applications,” the document continued.
Policymakers are also considering measures to prevent Google from using its Chrome browser, Play Store app store and Android operating system to give its search engine more opportunities than those of competitors.
“Google has controlled the most popular distribution channels for more than a decade, leaving hardly any opportunities for rivals to develop competing services that could benefit users,” it sounds.
After the DoJ files its final proposal with the court, Alphabet, the parent company over Google, has until 20 December to respond. For example, the company may come up with its own measures.
Alphabet let it be known in advance that the proposed measures will harm consumers. “Forcing us to share search queries, clicks and results with competitors jeopardises the privacy and security of our users,” warned Lee-Anne Mulholland, vice president of the tech giant in a blog. “The searches users share with Google are often sensitive and personal and are protected by our strict security standards. In the hands of another company without strong security practices, bad actors could gain access to that data.”
She stressed that a split could also be detrimental to Chrome and Android. “Splitting them off would change their business models, increase device costs and undermine Android and Google Play in their robust competition with Apple’s iPhone and App Store,” it said.
In any case, a breakup of Google is not an immediate concern. Any trial probably won’t be until next year and then there are three more opportunities for an appeal of a ruling, all the way to the US Supreme Court.
It shouild also be remembered this is not the US’ first attempt to break up a tech giant. Washington tried to impose similar measures on Microsoft two years ago, but without success. The intention then was also to do something about the an overly dominant market position.
Still, there are some success stories. In 1984, for example, the US succeeded in dismantling the telecom giant AT&T.
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