Assistant Attorney General Jonathan Canter announces antitrust lawsuit against Live Nation Entertainment as Attorney General Merrick Garland and Deputy Attorney General Lisa O. Monaco look on during a press conference at the Department of Justice in Washington, D.C., May 23. talk about , 2024. Reuters/Ken Cedeno
Ken Cedeno | Reuters
The Justice Department late Tuesday issued recommendations regarding the business practices of Google’s search engine, indicating it is considering a possible breakup of the tech giant as an antitrust remedy.
“Remedies necessary to prevent and constrain monopoly maintenance may include contractual requirements and prohibitions, non-discriminatory product requirements, data and interoperability requirements, and structural requirements,” the department said. stated in the submitted documents.
The Department of Justice also stated that “Google may use products such as Chrome, Play, and Android to provide Google Search and Google Search-related products and features, including new search access points and features, including: “We are considering behavioral and structural remedies to prevent this.” Artificial intelligence — over competitors and new entrants. ”
Additionally, the Department of Justice proposed limiting or prohibiting default agreements and “other revenue-sharing agreements related to search and search-related products.” This includes Google’s search location agreements with Apple’s iPhone and Samsung devices. The deal will cost the company billions of dollars in annual payments. The agency suggested that one way to accomplish this would be to require a “selection screen” that would allow users to choose from other search engines.
Such a remedy would end “Google’s control of distribution today” and ensure that “Google has no control over tomorrow’s distribution.”
The recommendation comes after a US judge ruled in August that: google It holds a monopoly position in the search market. The ruling comes after the government filed a landmark lawsuit in 2020 alleging that Google maintains its share of the general search market by creating strong barriers to entry and feedback loops that maintain its dominance. It was later given down. The court found that Google violated Section 2 of the Sherman Act, which outlaws monopolies.
Kent Walker, Google’s president of international affairs, said the company plans to appeal the ruling, citing the court’s emphasis on the high quality of Google’s search products, which the judge also noted in his ruling. emphasized.
The Justice Department also recommended that Google provide data in its search index and models to competitors, including AI-assisted search features and ad ranking data. The Justice Department is also considering remedies that would “prohibit Google from using data or retraining that cannot be effectively shared with others due to privacy concerns,” according to the filing.
The recommendations are still far from finalized.
Judge Amit Mehta said he aims to issue a relief ruling by August 2025, and the final impact of Google’s appeal could take years.
In response to Tuesday’s filing, Google’s vice president of regulation, Lee Ann Mulholland, called the Justice Department’s recommendations “radical.”
“This case concerns a series of search distribution agreements,” Mulholland said. in a blog post. “Rather than focus on that, the government appears to be pursuing an overarching agenda that affects many industries and products and has significant unintended consequences for consumers, businesses, and U.S. competitiveness.” .”
She added, “If you separate Chrome and Android, you’re going to break them and a lot of other things.”
Some legal experts say the most likely outcome is that the court will require Google to end certain exclusive agreements, such as the one it has with Apple. The court may recommend that Google make it easier for users to try other search engines, experts told CNBC. But experts say a breakup seems unlikely.
In the second quarter, Google Search and More’s revenue was $48.5 billion, accounting for 57% of Alphabet’s total revenue. The company holds 90% of the search market share.
This week, in a separate antitrust case, a U.S. judge issued a permanent injunction forcing Google to offer an alternative to the Google Play Store for downloading apps on Android phones.
In September, a judge finished hearing another antitrust case brought by the Justice Department, but this one focused on Google’s ad tech business.
clock: Judge orders Google to offer Android app store alternative app in Epic Games trial
