(CNN) — For the first time since AT&T was broken up by Baby Bell 40 years ago, the U.S. government is considering breaking up Google, one of the world’s largest and most significant monopolies.
The U.S. Department of Justice said in a court filing Tuesday night that it may recommend dismantling Google’s core businesses and separating Google’s search business from the Android, Chrome and Google Play app stores.
“That way, Google will be able to leverage products like Chrome, Play, and Android to offer Google Search-related products and features, including Google Search and emerging search access points and features such as artificial intelligence, over rivals and new entrants.” “They will no longer be able to use it to their advantage.” the government said in a court filing.
The Justice Department’s recommendation comes after a federal judge ruled in August that Google violated U.S. antitrust laws in its search business. The ruling, in which the judge called Google a “monopoly,” sets the stage for changes to Google’s oldest and most important business and the way millions of Americans get information online.
In a blog post, Google called the government’s potential plan “radical” and argued it could worsen the customer experience. Google said it could “break” Android and Chrome, hinder AI innovation and force companies to share personal information with competitors. Violating people’s privacy.
“This lawsuit concerns a series of search distribution agreements,” the company said in a blog post. “Rather than focus on that, the government appears to be pursuing an overarching agenda that impacts many industries and products and has significant unintended consequences for consumers, businesses, and U.S. competitiveness.” .”
Google (GOOG) stock fell 1.9% in the opening minutes of trading on Wednesday, before recovering slightly despite modest gains in major indexes.
The U.S. government’s lawsuit alleges that Google uses multiple interlocking tactics and self-managed products to crowd out competitors in the search space, leaving consumers with little choice and the search engine market less innovative.
The case centered on Google’s multibillion-dollar exclusive agreements with other tech companies, including Apple, to make it the default search provider on smartphones and web browsers. U.S. District Judge Amit Mehta ruled that these deals were anticompetitive.
Now that the court has determined that Google broke the law, the next stage of the battle will need to consider what penalties Google will face for its wrongdoing. This stage of the case is proceeding despite Google’s vow to appeal Mehta’s underlying decision. The entire process, along with appeals, can take months or even years to play out.
Some of the specific penalties the Justice Department is seeking include a possible ban on Google’s exclusive agreements, according to a government filing Tuesday. That could mean dramatic changes for smartphone users, such as ending a long-standing contract with Apple.
The Justice Department could ask a judge to require electronic devices to include a “choice screen” that allows consumers to select their preferred search engine from the beginning, rather than having Apple or Google set the default. added. Such selection screens are standard in other markets such as the European Union.
The US government may also try to prevent Google from promoting its search engine with its other products. For example, you can request a rule that prevents Chrome from routing searches through Google by default. This type of behavior, known as self-preference, has come under increasing scrutiny by U.S. policymakers and competition enforcers.
The Department of Justice also looks ahead to how Google’s current power in search could give it an insurmountable advantage in artificial intelligence, given the amount of data required to train sophisticated AI models. He also indicated that he is considering it. The government is considering proposed penalties against Google that would allow websites to opt out of having their content collected for Google’s AI training purposes or appearing in AI-generated summaries of search results. said. Prosecutors also could force Google to provide rival companies with software models used in its AI-assisted search capabilities, he added.
“Google’s ability to use its monopoly power to provide artificial intelligence capabilities creates new barriers to competition and risks further entrenching Google’s dominance,” the filing states. .
The case was said to be the largest technology antitrust case since the antitrust showdown between the U.S. government and Microsoft in the early 2000s.
Google said in August that it would appeal Mehta’s decision, repeating its argument in court that its search engine is the best and therefore the most popular among consumers.
“As this process continues, we remain focused on building products that people find useful and easy to use,” Kent Walker, Google’s global president, said in a post to X at the time. .
Whatever ultimately happens with Google, it could set the stage for potential relief in other ongoing antitrust cases against the tech giant. Google is facing a separate lawsuit brought by Justice Department lawyers and 17 states that alleges its advertising business is anticompetitive. Amazon, Apple, Meta, and Ticketmaster are also in antitrust battles.
CNN Wire
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