US mulls Google breakup after legal ruling on monopoly

The US government is weighing the breakup of Alphabet's Google in response to its dominance in online search, following an August ruling that found the tech giant maintained an illegal monopoly.

This historic case could force Google to divest parts of its business, such as its Chrome browser and Android operating system, marking the first potential dismantling of a major company for monopolistic practices since the failed Microsoft breakup case two decades ago.

The US Department of Justice (DOJ) announced on October 8 that it may ask a judge to enforce these divestitures, aiming to weaken Google’s grip on internet searches and to prevent the company from expanding its dominance into emerging fields like artificial intelligence (AI).

Google processes about 90% of US internet searches, and the ruling challenges its use of agreements with tech companies like Apple to ensure its search engine is the default option on most devices, particularly smartphones and web browsers.

Google’s payments to maintain its search engine's status on devices amounted to US$26.3 billion in 2021, contributing to its near-total control of the US search market.

The DOJ’s proposed remedies aim to eliminate these financial agreements and open the door for greater competition.

The proposal also includes mandating that Google share its search index and data with competitors and limit its influence in AI-driven search technologies.

The DOJ argues that curbing Google’s power in the search market today is essential to prevent it from monopolizing future innovations in AI.

Prosecutors warned that Google could leverage its dominance in search to stifle competition in AI, an area where its search tools could be integrated into new technologies.

To further promote competition, the DOJ may ask the court to restrict Google’s AI agreements that block competitors' access to web content for training models.

The government’s push for these remedies follows a ruling by US District Judge Amit Mehta in Washington, which found that Google’s extensive agreements with device manufacturers helped it secure its dominant position illegally.

The DOJ’s full list of proposed remedies is expected by November 20, and Google will have the opportunity to present its counterproposals by December 20.

Google has strongly criticized the proposed breakup, describing the DOJ’s suggestions as "radical." The tech giant plans to appeal the ruling and has emphasized that its search engine won users because of its quality, not because of unfair practices.

It also claims that it faces significant competition from companies like Amazon and that users can easily choose alternative search engines.

This antitrust battle is just one of several legal challenges facing Google. In a separate case on October 7, a federal judge ordered Google to open up its app store to greater competition, ruling in favor of Epic Games, which had accused Google of monopolizing app distribution on Android devices.

The judge’s ruling, set to take effect in November, will require Google to allow third-party app downloads and alternative payment methods, further weakening its control over the Android platform.

The DOJ’s case against Google is part of a broader effort by US regulators to rein in Big Tech.

Other major companies like Meta, Amazon, and Apple are also facing antitrust lawsuits, signaling a more aggressive approach toward tackling monopolistic behavior in the tech industry.

If successful, the breakup of Google could dramatically reshape the landscape of online search, providing smaller competitors with new opportunities while reducing Google’s dominance over how Americans access information on the internet.