DOJ Proposes Partial Disintegration of Google Following Antitrust Verdict
The Justice Department is advocating for the divestiture of Google's proprietary browser, Chrome, following a landmark court decision. The pivotal judgement underpinned that the technology behemoth had unlawfully exploited its search monopoly.
Efforts for an Overhaul Raise the Stakes
The demand for a segmentation of Google's businesses, and a revision of its Android mobile operating system, raises the stakes in what could be the most substantial antitrust action in the United States in recent years, given the court's approval. Google has publicly disclosed its plan to contest the judicial ruling from August that alleged the company had transgressed federal antitrust regulations, thereby strengthening its monopoly in the online search market. A final verdict on this case is not anticipated until after the presidency of President-elect Trump is established. Significantly, this case could represent an inaugural, robust examination of technology antitrust policies under the forthcoming Trump administration. Simultaneously, the DOJ has urged: "Google must promptly and fully divest Chrome, to a buyer approved by the Plaintiffs in their sole discretion, subject to terms that the Court and Plaintiffs approve," according to the Department’s submitted final judgment.
DOJ Suggests Changes and Confronts Objections
DOJ attorneys have suggested Google's divestiture from Android devices to U.S. District Judge Amit Mehta. However, they anticipate potential objections. An alternate solution might be to restrict Google's ability to exploit its control over the Android ecosystem to favor its general search services and search text ad monopolies. The DOJ also argues that such changes would inhibit Google's tendencies to discriminate favorably towards its own search and ads businesses. The Justice Department is additionally encouraging Judge Mehta to decree that Google must dismantle third-party payments that purportedly suppress competition and prohibit the tech giant from allowing privileged access to its platforms such as YouTube or its creative AI services like Gemini. However, Google's chief legal officer, Kent Walker, has contested these proposals, remarking that they pose a radical interventionist agenda that would significantly hamper America's technology sector and the American people's access to Google Search.
The Saga Continues
The roots of this case can be traced to a lawsuit that the Justice Department initially filed against Google under the preceding Trump administration in 2020. This suit accused the company of illegally dominating the online search market, primarily based on contracts between Google, Apple's Safari, and Mozilla's Firefox that are worth billions. As the battle continues, DOJ's second lawsuit against Google, filed recently in 2023, accuses the entity of antitrust law violations in its ad-tech operations. The closing debates in this case are scheduled for Monday in the federal court, in Alexandria, Virginia. Amidst these controversies, it's worth noting that Donald Trump, during the 2024 presidential campaign, threatened to sue Google, and his nominee for attorney general, Matt Gaetz, has suggested the dissolution of such companies. Conversely, the Republican leader's deregulatory platform attracted donations from Silicon Valley investors, as highlighted by Dan Primack.
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