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Dividing the empire: How the US government wants to tame Google

DB
David Boulder
· 21. listopadu 2024 · 3 min čtení

The U.S. Department of Justice (DOJ) is stepping up its fight against monopolies in the technology world and has targeted one of the biggest players - Google. After successfully arguing that Google is running its search business illegally, the DOJ is now demanding a radical solution: a break-up of the tech giant. However, this effort will first have to be defended in court.

Google under scrutiny

The DOJ is demanding that parent company Alphabet sell its Chrome browser and either sell the Android operating system to a new owner or impose strict limits on its use. The aim is to prevent Google from pushing its own search engine or advertising services as the default setting on Android devices. These steps are meant to be a tool to restore competition.

"Google has a 61% share of the web browser market. The demand for a split is therefore in line with the seriousness of the situation," said antitrust lawyer Jeffrey Shinder. However, he points to complications - including Google's strong defense of $GOOG and finding a suitable buyer without its own monopoly problems.

History repeating itself?

The proposal represents the first attempt to break up a tech giant since the government sought to break up Microsoft in the 1990s. In 2002, the deal at the time allowed for more competition in the internet browser market. The question is whether this precedent will be repeated.

The decision now rests with Judge Amit Mehta, who agreed with the DOJ's assertion of monopolistic behavior by Google. The next phase of the trial, aimed at proposing specific measures, is expected in 2025.

Google vs. the government

Google denies the allegations, calling the government's actions "harmful to consumers, developers and American technological dominance." The company has promised to file an appeal, which could significantly delay the implementation of any measures.

"We're probably still a long way from a final decision," said Neil Chilson, a former technology adviser to the Federal Trade Commission. Even if the DOJ prevails, a judge may modify the regulation to better reflect market developments.

Implications for the future of the tech world

If the DOJ succeeds in enforcing the breakup of Google, the move could mark a new beginning for competition in search and online advertising. Smaller players like DuckDuckGo or Brave could gain more space and innovation could get a boost.

On the other hand, critics argue that drastic measures could damage the tech ecosystem. Google argues that splitting up its services would reduce quality for users and weaken America's position in the global tech race, especially vis-à-vis China.

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Source: Yahoo, Reuters.

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