Assistant U.S. Attorney Jonathan Kanter speaks about the antitrust lawsuit against Live Nation Entertainment during a news conference as Attorney General Merrick Garland and Deputy Attorney General Lisa O. Monaco look on during a news conference at the Department of Justice in Washington, U.S., on May 23, 2024. Reuters/Ken Cedeno
Ken Cedeno | Reuters
The Justice Department late Tuesday made recommendations on Google's search engine business practices, indicating that it is considering a possible breakup of the tech giant as an antitrust remedy.
Remedies needed “to prevent and restrict monopoly maintenance could include contract requirements and prohibitions; non-discriminatory product requirements; data and interoperability requirements; and structural requirements,” the department said in a filing.
The Justice Department also said it was “considering behavioral and structural remedies that would prevent Google from using products like Chrome, Play, and Android to leverage Google Search and Google Search-related products and features — including access points and emerging features of search, such as artificial intelligence — over competitors or entrants.” “News.”
In addition, the Department of Justice proposed restricting or prohibiting virtual agreements and “other revenue-sharing arrangements related to research and research-related products.” This will include Google's search position agreements with Apple's iPhone and Samsung devices, deals that cost the company billions of dollars a year in payments. One way to do this, the agency suggested, is to require a “selection screen,” which might allow users to choose from other search engines.
Such remedies would end Google's “control over distribution today” and ensure Google's “inability to control distribution tomorrow.”
These recommendations come after a US judge ruled so in August Google It monopolizes the search market. The ruling came after the government in 2020 brought the landmark case, alleging that Google maintained its share of the general search market by creating strong barriers to entry and a feedback loop that maintained its dominance. The court found that Google violated Section 2 of the Sherman Act, which prohibits monopolies.
Kent Walker, Google's head of global affairs, said the company plans to appeal the ruling, and highlighted the court's focus on the high quality of Google's search products, which the judge also noted in his ruling.
The Justice Department also recommended that Google make its data available to competitors within its search index and models, including AI-powered search features and ad classification data. The Justice Department is also considering remedies that would “prevent Google from using or retraining data that cannot be effectively shared with others based on privacy concerns,” according to the filing.
The recommendations are still far from being decided upon.
Judge Amit Mehta said he would aim to rule on remedies by August 2025, and Google's appeal would likely drag out any final impact perhaps for years.
In response to Tuesday's request, Google's vice president of regulatory affairs, Lee Ann Mulholland, called the Justice Department's recommendations “extreme.”
“This case concerns a set of research distribution contracts,” Mulholland said in a blog post. “Instead of focusing on that, the government appears to be pursuing a sweeping agenda that will impact multiple industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness.”
“Disconnecting Chrome or Android would break them — and a lot of other things,” she added.
The most likely outcome, according to some legal experts, is that the court will ask Google to get rid of some exclusivity agreements like the one it has with Apple. Experts told CNBC that the court may suggest that Google make it easier for users to try other search engines. However, experts said a breakup seems less likely.
In the second quarter, Google Search and others generated revenue of $48.5 billion, or 57% of Alphabet's total revenue. The company has 90% of the search market share.
In a separate antitrust case this week, a US judge issued a permanent injunction that will force Google to offer alternatives to its Google Play Store for downloading apps on Android phones.
A judge in September concluded a trial in another antitrust case brought by the Justice Department — though that case involved Google's ad technology business.
Watch: Judge orders Google to provide alternatives to its Android app store in the Epic Games experience
