US Government May Try To Breakup Google

Reports are mounting that the US government may try to breakup Google following its court victory that saw the company labeled an illegal monopoly.

The Department of Justice won its largest antitrust case since its case against Microsoft in 2001. Critics have long maintained that Google’s extensive search deals, control of Android, Chrome’s domination of the web browser market, and Google’s advertising platform make it nearly impossible for competitors to gain any significant traction.

The situation would be akin to a single automaker controlling 90% of the auto market, while simultaneously being the biggest fuel company in the world, and the largest parts manufacturer. Not only would there be no incentive for the automaker to create vehicles that were fuel efficient, or low-emissions, but it would also be nearly impossible for any other company to gain a meaningful share of the market.

In his ruling, Judge Amit P. Mehta agreed with the DOJ, declaring Google is an illegal monopoly and opening the door to a range of corrective measures.

A Complete Breakup of Google

According to a growing number of reports, the DOJ is seriously looking at the possibility of breaking up Google. There’s any number of ways the company could be split up.

Android

One of the most likely scenarios is forcing the company to divest itself of Android. Given that Android is the dominant mobile operating system worldwide, Android represents a significant piece of Google’s domination of the search market. Every single phone comes with Google as the default. Whats more, Google’s agreements with Android phone manufacturers requires Google’s apps be preinstalled. Forcing Google to divest itself of Android could help level the playing field.

Chrome

Similarly, given the importance of Chrome to Google’s search dominance, the company may be forced to divest itself of the world’s most popular browser. Much like a dominant automaker wouldn’t have much incentive to make their vehicles fuel efficient when they also control the fossil fuel industry, Google doesn’t have much incentive to deliver true privacy via Chrome when its entire business models depends on leverage customer data to help power its search and advertising business.

Google has repeatedly been under scrutiny for how it handles its privacy in Chrome, with The Washington Post labeling the software “spy software,” and the company settling a lawsuit in which it knowingly continued to collect data even when users had turned on Icognito mode.

Given how important Chrome is, both for driving users to Google Search and providing the company to a treasure trove of user data, it wouldn’t be surprising to see the DOJ push for an independent Chrome browser.

Ad Network

At its heart, Google is an advertising company. Everything it does, all of its consumer products, have one goal behind them: deliver advertisements to more users. As a result, its search business, Chrome, Android, and a host of other products, serve to collect use data and deliver the most relevant ads.

Given that Google runs the single biggest advertising platform, its ad business is another likely possible target for breakup.

Non-Breakup Options

If the DOJ backs down and decides not to push for a breakup of Google, there are still any number of available options to curb Google’s monopolistic behavior.

Exclusionary Deals

It’s almost a forgone conclusion that Google will be barred from the type of exclusionary deals that has helped it make Google the default search engine on virtually every phone sold, as well as a slew of computers.

As a result, Apple and the countless Android device manufacturers would be in a better position to offer alternative options.

Decoupling AI and Search

Websites have recently been put in a difficult position of having to choose between either allowing Google’s Gemini AI to scrape them for content and use that content for its AI Overviews, or block Gemini and lose significant visibility and traffic from the world’s biggest search engine.

Any measures taken by the DOJ will hopefully force Google to give websites more choice, not forcing them to either accept AI scraping or lose out on significant traffic.

Data Sharing

Regardless of what steps are taken, the DOJ is likely to try to force Google to share the data it collects with its rivals, improving their ability to compete with the search giant.

Google’s Uncertain Future

While Google has already vowed to appeal the verdict, things are much different now than they were when the government sought to breakup Microsoft, the closest legal precedent.

The tech and internet industry was still in its infancy when the DOJ sued Microsoft, and the company was still considered the golden child of US innovation. Microsoft enjoyed far more favorable public opinion than Google—or most of Big Tech—enjoys today.

In addition, reigning in Big Tech has become a bipartisan issue, whereas in the past it was largely seen as an exclusive goal of the Democratic party. Nowadays, Republicans are as anti-Big Tech as their Democratic colleagues.

In addition, Google is still facing another antitrust lawsuit over its advertising business, the outcome of which could be swayed by the DOJ’s win in the search case.

All of this means that Google is facing an uphill battle in its efforts to continue with business as usual.

Google Has Only Itself To Blame

Unfortunately for Google, it has only itself to blame for the dilemma it now finds itself in. The company once had the motto, “don’t be evil” as one of its core principles, a motto it has long-since abandoned.

To make matters worse, Google has repeatedly been found abusing its users’ trust, trampling their privacy, and playing fast and lose with its monopoly power.

Whatever happens next, Google has only itself to blame.

from WebProNews https://ift.tt/xsJcbur