icon
icon
icon
icon
Upgrade
icon

Google Faces Major Split As The DOJ Pushes for Divesting Chrome and Android

AInvestWednesday, Oct 9, 2024 4:11 am ET
1min read

The US Department of Justice reportedly said on Tuesday that it might ask a judge to force Alphabet, Google's parent company, to divest parts of its business, such as Chrome and the Android operating system, in order to break Google's illegal monopoly in these areas.

In August, a US judge ruled that Google had established an illegal monopoly in internet search, laying a legal foundation for the Department of Justice's antitrust penalties.

If Google were to be split up as the Department of Justice demands, US consumers' search habits could be completely rewritten, and Google's revenue would face a significant cut.

The DOJ said that to remedy the damage caused by Google's monopoly, it is necessary not only to end Google's control of the current market but also to ensure that Google will not have the opportunity to dominate the industry again in the future.

Prosecutors also claimed that they might further regulate Google's development in the field of artificial intelligence to prevent it from extending its past dominance in many industries to new industries.

After the Department of Justice's statement about splitting Google, Google responded that these proposals are very radical and far exceed the specific legal issues of the search monopoly lawsuit.

It also pointed out that the Department of Justice's proposed requirements on artificial intelligence could strangle the industry. At a time when artificial intelligence needs to encourage investment, the government is doing the opposite by intervening heavily, which will distort investment and incentive mechanisms and hinder emerging business models.

The Department of Justice is expected to submit relevant proposals on November 20, and Google will have the opportunity to propose its own remedies before December 20 to avoid being split up as envisioned by the Department of Justice.

What is not in Google's favor is that just this Monday, Google's Android app store was ruled to be illegally restricting competition, and Google was asked to open its app store to promote competition in this field. In addition, Google is also involved in a lawsuit with the Department of Justice over its monopoly position in the advertising business. Various antitrust investigations have left Google overwhelmed.

Outside of Google, US antitrust authorities have also sued large technology companies such as Meta, Amazon, and Apple, and the pressure of antitrust has loomed over Silicon Valley. Google is likely to become the benchmark in this wave, providing guidance for other tech giants.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.