Last update:November 25, 2024, 3:11 p.m. IST

The DOJ’s “structural remedies” include restrictions to prohibit contracts with Apple and Samsung aimed at making Google the default search option. This could disrupt Google’s monopoly on the Internet search market

Google warned that any action taken against it would not benefit small businesses but would allow tech giants like Amazon, Microsoft and TikTok to fill the void.

Google has for some time been in the eye of the antitrust storm in the United States, where big tech like Alphabet, Meta, Microsoft and Amazon have been accused of creating market monopolies to kill competition.

In a significant development in the marathon antitrust case against the tech giant, the US Department of Justice (DOJ) plans to force Google to sell Chrome in order to end its monopoly on the Chrome market. Internet search.

The DOJ and several other states have filed several court documents indicating they plan to pursue “structural remedies” to stop Google from using some of its products, including Chrome.

A Bloomberg The report said the DOJ will push Alphabet-owned Google to sell the browser and ask a judge to require new measures related to artificial intelligence as well as its Android smartphone operating system.

The intervention follows a landmark ruling in August by Judge Amit Mehta of the U.S. District Court of Columbia. Mehta said that “Google is a monopolist” and has “acted to maintain its monopoly.”

What is the antitrust case against Google?

The DOJ and more than 30 U.S. attorneys filed charges against Google for its dominant position in the Internet search market and alleged that Google engaged in illegal practices aimed at suppressing competition from other search engines such as Bing and DuckDuckGo.

Judge Mehta created a feedback loop between the monopolization of Internet search and increased advertising revenue, allowing the company to raise prices for digital ads and further dominate the market.

Google “holds a market share of 89.2% for general search services, which increases to 94.9% on mobile devices,” according to the judgment.

The ruling also says Google violated Section 2 of the Sherman Act, which prohibits companies and individuals from monopolizing interstate commerce.

What other antitrust cases are there against Google?

Google faces another charge of building, acquiring and maintaining a monopoly on the technology that connects online publishers and advertisers. Dominating the buy-side and sell-side of the transaction allows Google to keep up to 36 cents on the dollar when it negotiates sales between publishers and advertisers, the government claimed. The court also believes that Google controls the advertising exchange market, which corresponds to the buy-sell side.

“A monopoly is bad enough. But we have a trio of monopolies here,” Justice Department lawyer Julia Tarver Wood was quoted as saying by The Associated Press in September.

In December, a judge declared Google’s Android app store a monopoly in a case brought by a private gaming company.

Google is also facing growing pressure on its ad technology business across the Atlantic. British competition regulators last week accused the search giant of abusing its dominant position in the country’s digital advertising market and giving preference to its own services.

European Union antitrust authorities suggested in their investigation last year that breaking up the company was the only way to address competition concerns about its digital advertising business.

What did Google say?

The search engine said the government had built a case of an Internet of yesteryear, where Internet users typed specific words from World Wide Web addresses into URL fields. Today, advertisers are more likely to turn to social media companies like TikTok.

Google had claimed that integrating its technology on the buy side, the seller side and in the middle ensures that ads and web pages load quickly and enhances security.

Google also said the government’s case wrongly focused on display ads and banner ads that load on web pages accessed via desktop and failed to account for consumer migration to mobile apps and the rise of advertisements placed on social media sites over the past 15 years. years.

Google lawyer Karen Dunn had warned that any action taken against Google would not benefit small businesses but would simply allow other tech giants like Amazon, Microsoft and TikTok to fill the void.

Google’s annual reports indicate that its revenues have declined in recent years for Google networks that include AdSense and Google AdManager, from $31.7 billion in 2021 to $31.3 billion in 2023.

What future for Internet searches?

As the DOJ considers structural solutions against Google, there could be some changes to Internet searches based on the antitrust lawsuit.

A key part of the lawsuits are multibillion-dollar exclusive deals to become the default search engine for cell phone makers like Apple and Samsung. Restrictions to ban these contracts could change default search options, potentially disrupting Google’s monopoly.

Restrictions on Google’s monopoly or divestment in its operations could lead to more competition from other AI-powered search options, such as OpenAI’s SearchGPT. Microsoft has also integrated AI into its research.

If Microsoft gains greater market share, the adoption of AI in Internet searches will revolutionize search engines. In 1999, Microsoft’s antitrust case revealed that the tech giant monopolized the web application market by bundling Windows with Internet Explorer. Microsoft had to fix the problem and the court ruling imposed restrictions to prevent monopolization.

Digital advertising will also change given that Google has a monopoly on the market. If remedies are applied by the court, they could lead to a change in digital advertising, including the types of ads consumers see and their relevance, according to a report from Technological target.

The entry of new competitors will give consumers more options on what they want to use, helping them understand privacy policies and make informed decisions.

What are the appeals issued by the DOJ?

The DOJ said in the filing that it was “considering behavioral and structural solutions that would prevent Google from using products such as Chrome, Play, and Android to take advantage of Google Search and Google Search-related products and features – including including emerging search hotspots and features.” such as artificial intelligence – on competitors or new entrants. »

Remedies also include “preventing and limiting the repetition of the same offense of illegally maintaining a monopoly in the future”, and limiting default and pre-installation agreements with companies such as Apple.

The solutions will address four concerns: search distribution and revenue sharing, generation and display of search results, scale and monetization of advertising, and accumulation and use of data .