NEW YORK, Oct 9 (The Real Republic) – The U.S. government may ask a court to compel Alphabet’s Google to divest parts of its business, including the Chrome browser and Android operating system, following a ruling that found Google has established an illegal monopoly in online search, handling about 90% of U.S. internet searches.
The Justice Department’s proposed remedies aim to disrupt Google’s current dominance and prevent future control, potentially reshaping how Americans access information online and reducing Google’s revenues.
WATCH: A US Judge ordered Google to open up its app store to competitors in order to give Android users more options to download apps and pay for transactions within them https://t.co/UyH2oRujMz pic.twitter.com/dPDq3yCdvE
— Reuters Business (@ReutersBiz) October 8, 2024
Key measures under consideration include ending Google’s payments to have its search engine pre-installed on devices. In 2021, Google paid $26.3 billion to maintain its market presence. The company plans to appeal, arguing that its search engine’s popularity stems from quality and that competition exists from other platforms.
With a market capitalization over $2 trillion, Alphabet faces increasing scrutiny from antitrust regulators. A recent ruling also requires Google to allow greater competition in its Play app store. The Justice Department seeks to curb Google’s potential dominance in artificial intelligence by possibly granting rivals access to its search data and models.
Google ordered by judge to open its app store to competitors: pic.twitter.com/vZe4yQpHQx
— Yahoo Finance (@YahooFinance) October 8, 2024
Google has raised concerns that such measures could hinder industry growth. A detailed proposal from the Justice Department is expected by November 20, with Google allowed to propose its own remedies by December 20. This ruling is seen as a significant win for antitrust enforcement against major tech companies.
Additionally, smaller competitors like Yelp and DuckDuckGo have expressed support for the proposals. In Europe, significant action against Google is less likely before the departure of EU antitrust chief Margrethe Vestager, though discussions continue regarding its advertising practices.
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