DoJ Eyes Google Breakup, Targets Android After Monopolistic Practices Ruling
Generated by AI AgentWord on the Street
Friday, Aug 9, 2024 5:00 pm ET1min read
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A legal expert commented today that, following a landmark antitrust lawsuit victory against Google, the U.S. Department of Justice (DoJ) is poised not only to curb the profitable agreement between Google and Apple but may also push for "structural remedies" that could force Google to divest its Android operating system.
A federal judge ruled on Monday that Google has engaged in illegal monopolistic practices to maintain its dominant position in the search engine market. This ruling represents a significant setback for Google and has the potential to fundamentally alter its business practices.
According to the DoJ, Google paid Apple $20 billion in 2022 alone to ensure that Google remains the default search engine on Safari browsers used on iPhones, iPads, and Macs.
Attorneys following the case suggest that in the next phase, where penalties for Google's monopolistic behavior will be determined, government lawyers may seek to inhibit Google's attempts to dominate the next generation of AI-driven search. Such measures would make it easier for competitors to erode Google's current market share, which stands at around 95%.
Gene Burrus, a former assistant general counsel at Microsoft, noted that DoJ lawyers are almost certain to ask the judge to impose "structural remedies," such as forcing Google to divest the Android operating system. This would go beyond merely altering Google's conduct in its search business and its partnerships with companies like Apple.
The judge has already indicated that the Android operating system has played a role in unlawfully extending Google's monopoly power.
Google has announced its intention to appeal the judge's decision. Antitrust lawsuits are historically lengthy battles, and the final outcome might not be known for months or even years. George Hay, a former chief economist for the DoJ's antitrust division and now a law professor at Cornell University, believes the appeal process could last up to five years.
In a related move by the U.S. government, efforts may be underway to thwart Google's ambitions in the burgeoning field of AI-driven conversational search, where the company aims to maintain its dominance.
Though Apple is not a direct defendant in the antitrust case, its multi-billion dollar agreements with Google are a focal point. Google has reportedly been paying Apple billions annually to secure its position as the default search engine on Apple devices, a deal worth $20 billion in 2022 alone.
A federal judge ruled on Monday that Google has engaged in illegal monopolistic practices to maintain its dominant position in the search engine market. This ruling represents a significant setback for Google and has the potential to fundamentally alter its business practices.
According to the DoJ, Google paid Apple $20 billion in 2022 alone to ensure that Google remains the default search engine on Safari browsers used on iPhones, iPads, and Macs.
Attorneys following the case suggest that in the next phase, where penalties for Google's monopolistic behavior will be determined, government lawyers may seek to inhibit Google's attempts to dominate the next generation of AI-driven search. Such measures would make it easier for competitors to erode Google's current market share, which stands at around 95%.
Gene Burrus, a former assistant general counsel at Microsoft, noted that DoJ lawyers are almost certain to ask the judge to impose "structural remedies," such as forcing Google to divest the Android operating system. This would go beyond merely altering Google's conduct in its search business and its partnerships with companies like Apple.
The judge has already indicated that the Android operating system has played a role in unlawfully extending Google's monopoly power.
Google has announced its intention to appeal the judge's decision. Antitrust lawsuits are historically lengthy battles, and the final outcome might not be known for months or even years. George Hay, a former chief economist for the DoJ's antitrust division and now a law professor at Cornell University, believes the appeal process could last up to five years.
In a related move by the U.S. government, efforts may be underway to thwart Google's ambitions in the burgeoning field of AI-driven conversational search, where the company aims to maintain its dominance.
Though Apple is not a direct defendant in the antitrust case, its multi-billion dollar agreements with Google are a focal point. Google has reportedly been paying Apple billions annually to secure its position as the default search engine on Apple devices, a deal worth $20 billion in 2022 alone.
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