New York (Business Emerge), October 9: The U.S. government is considering significant action against Alphabet Inc. (GOOGL.O), potentially requesting a judge to mandate the company to sell off certain divisions, including its Chrome browser and Android operating system. This move comes amid accusations that these platforms are instrumental in upholding an unlawful monopoly in online search.
In a historic ruling, a judge determined in August that Google, which dominates 90% of internet searches in the U.S., has established an illegal monopoly. The remedies proposed by the Justice Department could fundamentally alter how Americans access information online, potentially decreasing Google’s revenues and providing increased opportunities for competitors to flourish.
“Addressing these issues thoroughly necessitates not only the termination of Google’s current distribution dominance but also preventing the company from controlling future distribution channels,” stated the Justice Department. The recommended solutions also aim to prevent Google’s prior market supremacy from infiltrating the rapidly evolving artificial intelligence sector, as noted by prosecutors.
Additionally, the Justice Department may request the court to halt Google’s financial agreements that facilitate its search engine’s pre-installation or designation as the default on newly released devices. In 2021, Google disbursed substantial payments—totaling $26.3 billion—to firms, including Apple (AAPL.O), ensuring its search engine remained the default choice on smartphones and browsers, thereby reinforcing its market presence.
In response to the proposed measures, Google announced its intention to appeal, describing the suggestions as “extreme” and asserting that they “extend far beyond the particular legal matters at hand.”