US weighs Google breakup in landmark antitrust case involving big tech companies

(Bloomberg) — The U.S. Justice Department plans to ask a federal judge to force Google to sell part of its business in what would be a historic breakup of one of the world's largest technology companies.

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Antitrust enforcers are considering a split to ease the dominance of Alphabet Inc.'s businesses in search, the agency said in a court filing Tuesday, confirming an earlier Bloomberg News report. Judge Amit Mehta could also order Google to provide access to the underlying data it uses to build its search results and artificial intelligence products, he added.

The Justice Department is considering behavioral and structural solutions that would prevent Google from using products such as Chrome, Play and Android to take advantage of Google Search and Google Search-related products and features, the agency said.

The 32-page document lays out a framework of potential options for the judge to consider as the case moves to the remedial phase. The agency said it would provide a more comprehensive proposal on corrective measures next month.

The effort marks the most significant measure to rein in a major technology company in the face of illegal monopolization since Washington unsuccessfully tried to break up Microsoft Corp. twenty years ago. The U.S. Justice Department and Federal Trade Commission have targeted Big Tech's dominance, scrutinizing deals and investments and accusing some of the nation's most powerful companies of illegally dominating markets.

Shares of Google fell 1% in pre-market trading in New York on Wednesday. A breakup of the company is unlikely at this point despite the antitrust swirls, said Daniel Ives, managing director and senior equity analyst at Wedbush Securities. Google will fight this in court for years.

Earlier this year, the Justice Department sued Apple Inc. for thwarting innovation by preventing competitors from accessing its hardware and software features. The FTC sent requests to Alphabet, Microsoft and Amazon.com Inc. regarding their investments in AI startups as part of a study into the impact of such partnerships on competition.

Antitrust authorities said Google gained size and data through its illegal distribution deals with other technology companies that made its search engine the default option on smartphones and web browsers. Google's Android business encompasses the operating system used on smartphones and devices as well as applications.

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The Justice Department also said it may require Google to give websites more opportunities to opt out of its artificial intelligence products. The agency said it was studying proposals related to Google's dominance of search text ads, such as requiring the company to provide more information and control to advertisers over where their ads appear. The ministry may also request that Google cannot invest in search competitors or potential rivals.

Google criticized the Justice Department's filing as sweeping, saying it would have significant unintended consequences for consumers, businesses and American competitiveness.

The DOJ's proposals go well beyond the legal scope of the court's decision regarding search distribution contracts, Lee-Anne Mulholland, Google's vice president of regulatory affairs, wrote in a blog post.

Antitrust pressure resulting from several cases is increasing against Google. Mehta, who ruled this summer that Google violated antitrust laws in the online search and search text ad markets, plans to hold a trial on the proposed remedy next spring and issue a ruling by August 2025 Google has already announced its intention to appeal Mehta's decision. , but must wait until he has finalized a remedy before doing so.

European Union watchdogs also touted the option of breaking up Google's business last year to ease antitrust concerns. Block competition chief Margrethe Vestager said the divestment is the only way to allay concerns about how the company favors its own services over ad tech rivals, advertisers and advertisers. online publishers. This European affair – which could lead to a final decision by the end of this year – marked the latest escalation in a long saga that has already led to a trio of European sanctions totaling more than 8 billion dollars (8, 8 billion dollars) for abuses in other countries. Google Services.

A group of US states that have sued Google over its search monopoly, independent of the Justice Department, said they may seek to make the tech giant pay for a public education campaign on how to change its search engine.

Another federal judge on Monday ordered Google to open its app store for the next three years to resolve a separate antitrust case brought by Epic Games Inc. over its dominance of app distribution on Android smartphones. The company also plans to appeal the decision.

Last month, the Justice Department and Google clashed in a third antitrust action focused on the company's dominance over technology used to buy and sell online ads. Final arguments in this trial are scheduled for the end of November. Antitrust officials have said they plan to force Google to sell part of its ad technology business if the court finds the company monopolizes that market.

–With help from Julia Love and Samuel Stolton.

(Updates with stock movement in sixth paragraph)

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