The US Department of Justice (DOJ) is contemplating a request for a federal court to break up Google after a ruling determined that its search engine constitutes an illegal monopoly.
This potential move is one of several remedies under consideration, according to a court filing submitted late Tuesday.
The filing marks the beginning of a protracted legal process to explore remedies that could significantly alter the structure of a company synonymous with online search. Among the remedies being discussed are restrictions on Google’s use of artificial intelligence to extract information from other websites for its search results. Additionally, the DOJ is considering prohibiting Google from making payments to major tech companies like Apple to maintain its status as the default search engine on devices such as iPhones.
“For more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little-to-no incentive to compete for users,” the filing stated.
US District Judge Amit Mehta ruled in August that Google has unlawfully exploited its dominance to suppress competition and hinder innovation. He has set a timeline for a trial regarding the proposed remedies, expected to begin in spring 2025, with a decision anticipated by August 2025.
This court filing is the first indication from the DOJ regarding the potential remedies it may pursue. However, Judge Mehta’s detailed approach means the government might ultimately decide against seeking a breakup of the company. The DOJ plans to conduct discovery in the coming weeks and is expected to present a more detailed proposal next month.
In response, Lee-Anne Mulholland, Google’s vice president of regulatory affairs, criticized the DOJ’s filing, suggesting it goes beyond the specific legal issues at hand.
“Government overreach in a fast-moving industry may have negative unintended consequences for American innovation and America’s consumers,” she said.
Google intends to appeal Judge Mehta’s ruling but must wait until he finalizes a remedy before proceeding with the appeal. Legal experts predict that the appeals process could take several years.
The trial in Washington, which featured extensive evidence regarding Google’s arrangements with other technology companies, revealed that Google invested over $26 billion in 2021 to secure default search engine agreements. Many speculations about remedies center on whether Google will be prohibited from engaging in such contracts. The DOJ characterized these distribution deals as a “starting point for addressing Google’s unlawful conduct.”
The department is also considering structural changes to prevent Google from using its various products, including its Chrome browser and Android operating system, to benefit its search business. The government also proposed allowing companies to opt out of having their data used by Google when it generates AI-enhanced search responses, noting that this could further entrench Google’s dominance in the market.
As the DOJ prepares to submit a detailed proposal next month, Google will also present its suggestions for remedies in December. The DOJ’s final proposal is expected in March 2025.
The regulatory scrutiny surrounding Google is intensifying globally, with European Union antitrust enforcers also contemplating a breakup as a means to address competition concerns regarding Google’s digital advertising operations. Recently, a federal judge ordered Google to allow competition in its Android app store as a consequence of maintaining an illegal monopoly in that space. Additionally, a separate case in Virginia is evaluating whether Google holds an illegal monopoly in online advertising technology.
The implications of the DOJ’s actions could significantly impact Google’s relationships, particularly with Apple, which benefits from the lucrative arrangement of having Google as the default search engine on its devices. Analysts warn that a ruling against Google could endanger Apple’s substantial revenue stream from this partnership.
