Cartel Law in Focus: Google Facing Breakup?

Eulerpool Research Systems Nov 21, 2024

Takeaways NEW

  • US Department of Justice plans a possible breakup of Google.
  • Court decision expected by mid-2025.
The U.S. Department of Justice plans to seek a court order that could compel Google to divest from key products like its Chrome browser and Android operating system. This measure is part of efforts to limit the company's market dominance in the field of online search. The requested order, which is expected to be filed over the course of Wednesday, is based on a framework previously presented by prosecutors last month. They had proposed that Google share search data with competitors and limit its ability to use search results to develop new AI models. This comprehensive solution from the Department of Justice follows an earlier decision by Judge Amit Mehta in Washington, D.C. He found that Google had created an illegal monopoly through exclusive agreements with mobile carriers, browser developers, and device manufacturers, particularly with Apple. The goal is to enable new providers in search engine development to have independent opportunities and create commercial possibilities that are attractive enough to bring about the next generation of search engine providers. Additionally, Google's payments to partners like Apple are to be examined to challenge the monopoly through default settings in web browsers. Google, whose parent company Alphabet has already appealed the liability decision, views its success as the result of the quality of its products. The company offers its Chrome browser and Android operating system for free to promote its search and advertising business, which generates the majority of its revenue. If a breakup of Chrome is enforced, Google could lose control over the world's most widely used browser. The company's lawyers warn that such a step could harm consumers, as few companies are capable of making the necessary investments for security and competitiveness. Judge Mehta is expected to decide on the measures by mid-2025. However, the future approach to antitrust law remains uncertain, particularly in light of the impending inauguration of new President Donald Trump in January.

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