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On Tuesday, the U.S. government indicated it may seek a court order to compel Alphabet Inc.'s Google to divest certain business segments, including its Chrome browser and Android operating system. This move is part of an ongoing effort to address what officials describe as an illegal monopoly in the online search market.
In a significant ruling last August, a judge determined that Google, which handles approximately 90% of internet searches in the U.S., had established an unlawful monopoly. The Justice Department's proposed actions could significantly alter the landscape of how Americans access information online, potentially reducing Google's revenue and creating more opportunities for its competitors to thrive.
"Fully remedying these harms requires not only ending Google's control of distribution today, but also ensuring Google cannot control the distribution of tomorrow," the Justice Department said.
The U.S. Justice Department is considering measures to curb Google's influence, particularly in the growing field of artificial intelligence AI, following its dominance in online search. Prosecutors may seek to prevent Google from making default search engine deals with device manufacturers, a practice that has fueled its monopoly. The potential remedies, which could include forcing Google to spin off key businesses like Chrome and Android, aim to reshape the digital landscape and limit Google’s power in emerging technologies like AI.
Google has paid billions annually to companies, including Apple, to secure its position as the default search engine on smartphones and browsers, reinforcing its market dominance. In 2021 alone, these payments totaled $26.3 billion. As Google faces a legal battle with the U.S. government over its search monopoly, the tech giant has vowed to appeal, labeling the proposed changes as "radical" and arguing that they extend beyond the core legal issues of the case, according to a company blog post.
Google argues that its search engine dominates due to its superior quality, highlighting that it faces significant competition from platforms like Amazon and that users can easily switch to other search engines.
Despite these claims, Alphabet, with a market value exceeding $2 trillion, is increasingly under scrutiny from both competitors and antitrust regulators, intensifying the legal pressures surrounding its monopoly in online search.
