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DOJ Considers Breaking Up Google in Historic Antitrust Move

by Sham
October 9, 2024
in Business, Finance
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DOJ Considers Breaking Up Google in Historic Antitrust Move
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  • The US Justice Department is considering asking a federal judge to force Google to sell off parts of its business in what would be a historic breakup of one of the world’s biggest tech companies.
  • Antitrust enforcers are weighing a breakup to mitigate Alphabet Inc.’s dominance in search, and the judge could also order Google to provide access to the underlying data it uses to build its search results and AI products.
  • The effort is the most significant move to rein in a major tech company over illegal monopolization since the unsuccessful attempt to break up Microsoft Corp. two decades ago.

The US Department of Justice is considering taking an unprecedented step to limit Google’s power. According to a recent court filing, the DOJ may push to split up the tech giant in what would be the biggest antitrust move against a major technology company in decades.

ICYMI: 🇺🇸 US DOJ is considering forcing Google $GOOG to sell off parts of its business, including Chrome and Android, as part of its antitrust case pic.twitter.com/hg1rMzEjTt

— BlockNews.com (@blocknewsdotcom) October 9, 2024

The Antitrust Case Against Google

In the court document, the Justice Department said it is weighing “structural remedies” to curb Google’s dominance in online search and search advertising. This could potentially involve forcing Google to sell parts of its business.

The filing confirms reports that began circulating earlier this year that the DOJ was considering pushing for a breakup of the Alphabet Inc. unit.

US District Judge Amit Mehta, who ruled this summer that Google illegally monopolized search and search advertising, could also order the company to share data and algorithms it uses to rank sites in search results.

The Stakes for Google and Silicon Valley

The effort to break up Google is the most aggressive antitrust action against a major technology company since the US unsuccessfully tried to split up Microsoft 20 years ago.

Federal regulators have been ramping up scrutiny of Silicon Valley‘s market power. This includes examining mergers and acquisitions as well as accusing giants like Google of illegally dominating their markets.

On Wednesday, Google’s share price fell nearly 3% on news of the potential forced restructuring.

Antitrust pressure has been steadily growing, especially after Judge Mehta’s ruling over the summer. Google has said it plans to appeal the decision but must wait for a final judgment on remedies.

What Comes Next

In the coming weeks, the DOJ is expected to submit a more detailed proposal on how Google could be broken up.

There will then be a two-week hearing on remedies in April, with Judge Mehta expected to issue a final ruling by August 2025.

While an actual breakup remains uncertain, the case represents a major threat to Google’s power and a warning to the broader tech industry.

Expert Analysis

According to Daniel Ives, an analyst at Wedbush Securities, a Google breakup is “unlikely at this point despite the antitrust swirls.”

Ives expects Google to fight the case vigorously. “Google will battle this in the courts for years,” he said.

The outcome of the landmark case will shape the future of one of the world’s largest and most influential companies. It also has major implications for the tech industry and could change how regulators approach Silicon Valley power.

Tags: Alphabet Inc.Amit MehtaBusinessDepartment of JusticeGoogle
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