Google breakup on the cards as US DOJ reveals proposed remedies to search monopoly
The US Department of Justice (DOJ) has proposed a comprehensive framework of remedies to dismantle Google’s alleged illegal monopoly in the search market.
Some of the remedies would effectively lead to Google’s breakup.
Google attacked the DOJ filing describing it as “radical.”
According to Lee-Anne Mulholland Google’s Vice President, Regulatory Affairs, “We believe that today’s blueprint goes well beyond the legal scope of the Court’s decision about Search distribution contracts. Government overreach in a fast-moving industry may have negative unintended consequences for American innovation and America’s consumers. We look forward to making our arguments in court.”
The DOJ’s filing follows a court ruling that found Google liable under the Sherman Act for monopolistic practices in general search services and search text advertising.
The court’s decision on August 5, 2024, highlighted that Google’s monopolistic behaviour has persisted for over a decade, creating significant barriers for rivals entering the market. The DOJ’s proposals aim to rectify the harms caused by Google’s conduct and prevent similar future violations.
The remedies being considered by the DOJ span four areas: Search Distribution And Revenue Sharing, Accumulation and use of data, Generation and Display of search results, and Advertising scale and monetisation.
In terms of Search Distribution And Revenue Sharing, the DOJ is considering limiting or ending Google’s use of contracts, monopoly profits, and other tools to control or influence distribution channels and search-related products. This could disrupt Google’s stronghold over the search market and pave the way for increased competition, says the DOJ.
To tackle Google’s data advantage, the DOJ is contemplating requiring Google to make available the indexes, data, feeds, and models used for Google search, including those used in AI-assisted search features. This could level the playing field by giving rivals access to the same resources that Google uses to dominate the search market.
The DOJ is also looking at prohibiting Google from using contracts or other practices to undermine rivals’ access to web content. The DOJ believed this could increase the diversity of search results and provide users with more choice.
Finally, in an effort to create more competition and lower the barriers to entry in the general search text advertising market, the DOJ is exploring ways to make it easier for other companies to compete with Google.
These proposed remedies are designed to unwind Google’s dominance in the search market, after the company was found to be operating an illegal monopoly under US anti-trust laws.
Additional reporting by Andrew Birmingham