Thursday, November 21, 2024

U.S. Proposes Breakup of Google


The Justice Department (DOJ) and a Group of States, asked a Federal Court late Wednesday, to force Google to sell Chrome, its Popular Web Browser, a move that could fundamentally Alter the $2 trillion Company’s Business and Reshape Competition on the Internet.

The Request follows a Landmark Ruling in August by Judge Amit P. Mehta of the U.S. District Court for the District of Columbia, that found Google had Illegally maintained a Monopoly in Online Search. Judge Mehta asked the DOJ and the States that brought the Antitrust Case to Submit Solutions by the end of Wednesday. to Correct the Search Monopoly.

Beyond the Sale of Chrome, the Government asked Judge Mehta to give Google a Choice: either Sell Android, its Smartphone Operating System, or Bar Google from making its Services Mandatory on Phones that use Android to Operate. If Google Broke those Terms, or the Remedies Failed to Improve Competition, the Government could force the Company to Sell Android at a later date.

In a sweeping Filing, the Government also asked the Judge to Stop Google from entering into Paid Agreements with Apple and Others to be the Automatically selected Search Engine on Smartphones and in Browsers. Google should also be Required by the Court to allow Rival Search Engines to Display the Company’s Results and Access its Data for a Decade, the Government said.

Being forced to sell Chrome and Android would be among the worst possible outcomes for Google. Chrome, which was introduced in 2008 and is Free to use, is the most popular Web Browser in the World, with an estimated 67% of the Global Browser Market.

Android is the World’s most Popular Mobile Software, with an estimated 71% of the Market. The system is Open-Source, meaning that Samsung and other Phone Manufacturers do Not Pay Google for its use. But most Android Devices come with Google’s Apps already Installed. Both are part of an elaborate Google Ecosystem that keeps People using the Company’s Products.

“The playing field is not level because of Google’s conduct, and Google’s quality reflects the ill-gotten gains of an advantage illegally acquired,” the Bovernment said in the Filing. “The remedy must close this gap and deprive Google of these advantages.”

Legal Experts said that the Request to Force the Sale of Chrome, could be met with Skepticism by Judge Mehta, in part because the Government’s attempted BVreakup of Microsoft in the 2000s was Overturned by an Appeals Court.

“That’s going to be an uphill climb for the government,” said Doug Melamed, a Visiting Fellow at Stanford Law School who worked in the DOJ’s Antitrust Division during the Microsoft Case.

Google is set to File its own Suggestions for Fixing the Search Monopoly by Dec. 20th. Both sides can Modify their Requests before Judge Mehta is expected to Hear Arguments on the Remedies this Spring. He is expected to Rule by the end of the Summer, 2025.

Kent Walker, Google’s President of Global Affairs, called the Government’s Proposal Extreme. “D.O.J.’s wildly overbroad proposal goes miles beyond the court’s decision,” He said in a Blog Post. “It would break a range of Google products — even beyond Search — that people love and find helpful in their everyday lives.”

Regulators have in recent years Cracked down on the Power of the Biggest Tech companies. The DOJ has also Sued Google over its Dominance in Advertising Technology, and Apple for making it difficult for Consumers to leave its tightly knit Universe of Devices and Software. The Federal Trade Commission (FTC) has separately sued Amazon and Meta, accusing them of Anticompetitive Behavior and Stifling Rivals.

It is unclear if these efforts will continue under Trump. Some of the Antitrust Lawsuits began during His First Administration.

Next Monday, a Federal Judge will hear Closing Arguments in the Second Major Antitrust Trial against Google, the one involving Advertising Technology, in the U.S. District Court for the Eastern District of Virginia.










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