Digital transformation

The US is considering breaking up Google as an antitrust measure.

Phan Van Hoa October 12, 2024 12:13

The US Justice Department has just made a decision that could shake up the technology industry as it considers breaking up Google, a move aimed at limiting the search giant's monopoly power.

The US Justice Department said in the filing that to prevent and limit the monopoly situation, Google may have to comply with a variety of remedies such as: contractual constraints, requiring fair treatment of products, data sharing and ensuring compatibility with other platforms, and possibly even changing the company's structure.

The Justice Department is also looking deeper into how Google uses products like Chrome, Play and Android to give its search service an unfair advantage, and is considering measures to force Google to treat competitors more fairly.

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The Justice Department also proposed banning exclusive deals between Google and companies like Apple, such as the deal to make Google the default search engine on iPhones and Samsung devices. This could cost Google a major source of revenue.

These measures would mark a significant turning point, effectively ending the era of Google's monopoly on the distribution of search products. Instead, the market would become more competitive, allowing competitors to thrive and giving users more choice.

Last August, a US court officially declared Google a monopoly in the search field. This decision was made after the US government accused Google of using many tricks to maintain its monopoly position, such as creating barriers that are difficult to overcome for competitors. To overcome this situation, the authorities have made proposals to reduce Google's power and facilitate the development of other search engines.

Kent Walker, Google's president of global affairs, said the company would appeal the court's decision. Google said the court had failed to properly assess the situation and stressed that its search product was of very high quality, something the judge himself acknowledged in his ruling.

The US Justice Department is requiring Google to share key information such as how its search engine works, advertising data and AI models with competitors. This is aimed at creating a more level playing field, giving other companies a chance to compete with Google.

Judge Amit Mehta of the U.S. District Court for the District of Columbia will decide specifically what measures Google must take by August 2025. However, Google's appeals process could take years, delaying the implementation of these measures.

In a response letter on October 8, Ms. Lee-Anne Mulholland, Vice President of Legal Affairs at Google, frankly criticized the proposals of the US Department of Justice as 'too strict' and 'unrealistic'.

Ms. Mulholland said in a blog post that the lawsuit initially focused on search distribution contracts, but the government wanted to expand the scope of the investigation to affect many other areas of the company. She was concerned that this would have negative consequences for consumers, businesses and American competitiveness.

The most likely outcome, some legal experts say, is for the court to order Google to break some of its exclusivity agreements, as it did with Apple. The court could suggest Google make it easier for users to try other search engines.

Google Search generated a whopping $48.5 billion in revenue in Q2, accounting for 57% of Alphabet’s total revenue. With a search market share of 90%, Google dominates the space.

In another antitrust case this week, a US judge issued a permanent injunction forcing Google to provide alternatives to the Google Play store for downloading apps on Android phones.

Last September, Google also faced an antitrust trial against its advertising operations by the US Department of Justice. The court's final decision will have a major impact on the future of this search giant.

According to CNBC
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The US is considering breaking up Google as an antitrust measure.
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