The U.S. Department of Justice is considering a court order to force Alphabet, Google's parent company, to divest parts of its business, such as Chrome and Android, to dismantle alleged illegal monopolies in these sectors. A U.S. judge had previously ruled that Google holds an unlawful monopoly in internet search, paving the way for antitrust penalties. If Google complies with these demands, it could significantly alter consumer search habits and substantially reduce its revenue.
The Justice Department argues that to counteract Google's monopolistic impact, they must ensure Google cannot dominate the market again in the future. There may also be regulatory oversight on Google's AI development to prevent its dominance from extending further. In response, Google criticized these proposals as overly aggressive and unrelated to the specific legal issues of the search monopoly case. They contend that regulatory intervention in AI could stifle investment and innovation at a critical moment for the industry.
Google has until December 20 to propose remedies to avoid the breakup envisioned by the Department of Justice, which plans to submit its proposals by November 20. Adding to Google's challenges, a recent ruling declared its Android app store practices illegal, pushing for increased competition in that area. The company is also battling the Justice Department over its advertising business's monopolistic status, stretching its resources thin amid various antitrust investigations.
Beyond Google, other major tech firms like Meta, Amazon, and Apple are facing similar antitrust scrutiny, signaling a broader regulatory wave over Silicon Valley. Google might set a precedent for how other tech giants respond to this regulatory pressure.
