Report: DOJ Mulls Google Breakup After Antitrust Ruling

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Facts

  • The US Department of Justice is reportedly mulling splitting up parts of Google to prevent a monopoly in online search and advertising.[1][2]
  • In August, Judge Amit Mehta of the US District Court for the District of Columbia ruled that Google had violated antitrust laws against creating an illegal monopoly and online search dominance.[3]
  • The ruling — one of the largest antitrust decisions in decades — followed allegations that Google paid billions of dollars to tech companies so as to be the default search engine on their devices and platforms.[2]
  • In a court filing on Tuesday, the DOJ said it is 'considering behavioral and structural remedies,' and will make an elaborate proposal next month to prohibit Google from illegally dominating online markets.[4]
  • The remedies reportedly include forcing Google to share data with rivals and abandoning deals that made it the default search option, including with Apple's iPhone and Samsung devices.[5][2][6]
  • If pursued, a forced breakup of Google would be the most significant dismantling of a US company — a rare occurrence for a tech major — since the breakup of AT&T in 1982.[7]

Sources: [1]Townhall, [2]New York Times, [3]Verity, [4]Bloomberg, [5]Guardian, [6]CNBC and [7]Washington Post.

Narratives

  • Narrative A, as provided by New York Post and New York Times. Breaking up Google is necessary to set the field of online search right. The company has long ruled over its rivals, often unfairly, as is now evident. However, breaking up the behemoth would still be a quick fix at best, and not enough to foster true competition. Regulators should also mandate the sharing of Google's anonymized search data with competitors.
  • Narrative B, as provided by Guardian. Splitting Google would be an overreach that could harm consumers and stifle innovation. Google's success is due to superior products and services, not anticompetitive practices. Forcing divestments could disrupt the seamless integration of Google's ecosystem, potentially leading to a worse user experience and hindering technological progress.

Predictions