The U.S. Department of Justice is contemplating requesting a federal court to disband Google following an adjudication that its widely used search engine constitutes an illegal monopoly. However, this is merely one of the many resolutions being evaluated, as stated in court documents filed recently.
In a filing submitted late Tuesday, attorneys for the government discussed several potential solutions that could be pursued. These may include limitations on the way Google’s artificial intelligence gathers information from various websites to provide search results, as well as prohibiting the tech giant from paying substantial sums to companies like Apple to maintain its status as the default search engine on devices such as iPhones.
This court submission marks the initial phase in a prolonged legal process aimed at developing remedies that could significantly alter a company synonymous with online search over the years. “For over a decade, Google has dominated the most utilized distribution channels, leaving competitors with minimal motivation to vie for users,” the antitrust regulators stated in the filing. “Addressing these damages adequately requires not only the termination of Google’s current control over distribution but also the assurance that they cannot dictate future distribution.”
U.S. District Judge Amit Mehta ruled in August that Google’s search engine had unlawfully leveraged its market dominance to inhibit competition and thwart innovation. He has set a schedule for a trial regarding the suggested remedies for the upcoming spring, with plans to reach a decision by August 2025.
This recent submission from the government is the first indication of the possible remedies under contemplation, yet under Judge Mehta’s thorough methodology, the government may eventually decide not to pursue drastic measures like divestiture.
In the forthcoming weeks, the Justice Department will be engaging in extensive discovery and presenting a more comprehensive proposal by next month.
In response to the recent filing, Lee-Anne Mulholland, Google’s vice president of regulatory affairs, expressed concern that the Department of Justice is indicating requests that extend well beyond the case’s specific legal matters. “Interference from the government in a rapidly evolving sector could lead to negative unforeseen consequences for both American innovation and consumers.”
While Google has indicated its intention to challenge Judge Mehta’s ruling, the tech firm must wait for finalization of the remedies before proceeding. The appeals process is expected to take up to five years, as predicted by George Hay, a law professor at Cornell University and former chief economist for the Justice Department’s antitrust division during the 1970s.
Throughout a comprehensive trial held in Washington, substantial evidence focused on the agreements Google established with other tech firms to ensure it remained the default search engine on consumer technology. In just 2021, Google reportedly invested over $26 billion to secure such default agreements, according to testimony during the trial.
Consequently, speculation about prospective remedies has concentrated on whether the company would face restrictions in forming such agreements. In the latest court filing, government lawyers characterized these distribution agreements as an essential starting point to tackle Google’s unlawful actions.
In this context, the department is also contemplating structural changes to prevent Google from exploiting its products, such as the Chrome browser, Android operating system, AI features, and app store, to boost its search business.
“We have invested billions into Chrome and Android,” Mulholland noted. “Separating them would alter their business models, increase device costs, and weaken Android and Google Play’s competitive standing against Apple’s iPhone and App Store.”
Another idea proposed by the government would enable companies to opt out of having their data utilized by Google for AI-driven responses to user search queries. “Google’s ability to exploit its monopoly power to bolster AI features presents a rising obstacle for competition, potentially solidifying Google’s supremacy further,” commented government lawyers.
In a blog response, Google emphasized that artificial intelligence is an emerging technology fiercely contested in the commercial sphere. “There are significant risks associated with the government intervening in this crucial industry,” Mulholland added.
Following the government’s more detailed proposal next month regarding the approach to curbing Google’s anti-competitive behavior, the company will provide its suggestions for modifications in December. Prosecutors will finalize their proposal by March 2025.
Google continues to face increasing regulatory scrutiny on both sides of the Atlantic, with EU antitrust regulators also indicating that breaking up the company may be essential to address competitive concerns within its digital advertising segment.
Additionally, a federal judge recently mandated that Google must make its Android app store available for competition as a consequence of maintaining an illegal monopoly in that sector. In another case, a federal judge in Virginia is deliberating whether Google maintains an illegal monopoly within the online advertising technology landscape.