FX.co ★ U.S. Justice Department Weighs Breakup Of Google

The U.S. Department of Justice (DOJ) is exploring both behavioral and structural measures to address anticompetitive practices by Google LLC. These practices have created intertwined and detrimental effects, posing unprecedented challenges. This signifies that the DOJ is contemplating a potential breakup of Google as an antitrust solution, as reported.

This comes on the heels of a U.S. judge's ruling on August 5, which declared that Google holds monopolistic positions within the U.S. general search services and U.S. general search text advertising sectors.

The DOJ emphasized its responsibility to seek remedies and the Court's authority to order solutions that not only address current harms caused by Google's unlawful conduct but also prevent future maintenance of illegal monopolies.

In a recent filing with the U.S. District Court for the District of Columbia, the DOJ indicated it might implement measures to prevent Google from leveraging products like Chrome, Play, and Android to unfairly benefit Google search and its associated products over competitors or new market entrants. This includes emerging search functionalities and features, such as those driven by artificial intelligence.

It was highlighted that Google's longstanding dominance over the Chrome browser and its preinstalled Google search default significantly restricts distribution options, discouraging the emergence of new competitors.

Within the scope of the governing legal framework and considering complex market dynamics, aligned with the Court's September 18 Order, the DOJ is deliberating on remedies targeting four main types of harm. These relate to Google’s search distribution and revenue-sharing agreements, the generation and display of search results, the scale and monetization of advertising, as well as the collection and use of data.

Potential remedies to curb monopoly retention could involve establishing contract requirements and prohibitions, enforcing non-discriminatory product standards, implementing data and interoperability requirements, and applying structural mandates.

The DOJ also proposed remedies that might limit or ban default agreements, preinstallation deals, and other revenue-sharing arrangements tied to search and related products, potentially with or without incorporating a choice screen.

The department asserts that fully addressing these harms would dismantle Google's current control over distribution, ensuring it cannot seize control over future distribution channels.