The Justice Department has argued in its antitrust case against Google that the best way to resolve its monopoly in the internet search industry is to break up the $1.81 trillion company. This marks the beginning of a three-week hearing that could ultimately reshape the tech giant and significantly alter the balance of power in Silicon Valley.
Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled last August that Google violated antitrust laws to maintain its dominance in online search. Now, both the Justice Department and Google will present arguments on how the situation should be remedied. Judge Mehta is expected to issue an order by the end of the summer detailing the appropriate corrective actions, referred to as “remedies.”
In its opening argument, the Justice Department urged the judge to compel Google to sell its Chrome browser, which it claims plays a critical role in funneling users to Google’s search engine. Government lawyers also proposed measures that would give competing search engines an opportunity to gain market share, should the court wish to restore real competition.
Possible Breakup and Industry Impact
“This is the time for the court to tell Google and every other monopoly that is listening… that there are consequences for violating the antitrust laws,” said Justice Department attorney David Dahlquist during his opening remarks.
The implications of the case could ripple far beyond Google. Just last week, another federal judge found the company to be a monopoly in the online advertising market. In addition, Google lost a high-profile 2023 case against Epic Games Store, which accused it of antitrust violations related to its Play Store practices.
These ongoing legal challenges could also threaten Google’s ambitions in the AI sector, where it faces increasing competition from OpenAI, Microsoft, and Meta Platforms. As the company integrates more AI features into its search engine, the Justice Department has already urged the court to ensure that Google doesn’t use its dominant position in search to secure unfair advantages in AI.
Ongoing Scrutiny of Big Tech
The case, originally filed in 2020 during President Donald Trump’s first term, continues amid broader efforts to regulate the tech industry, notes NIXsolutions. Apple, Meta, and Amazon are also facing antitrust scrutiny, with Meta currently in the second week of a trial focused on whether its acquisitions of Instagram and WhatsApp harmed competition.
Google, for its part, is proposing only modest changes, such as renegotiating agreements with smartphone and device manufacturers that make Google the default search engine. The Justice Department, however, is pushing for more aggressive measures, including bans on such deals and a potential future order forcing Google to divest its Android operating system if competition remains weak.
We’ll keep you updated as more developments unfold during this pivotal hearing.