Google receives threat of breakup from US

The US government is considering asking to break up Google, the world’s largest search engine, saying it is causing “serious harm” to Americans.

The Department of Justice (DOJ) has been considering so-called remedies since one incident. Landmark court ruling in August The results revealed that Google had illegally crushed its competition in online search.

If the Justice Department moves forward with the proposed remedy and it is accepted by the judge in this case, it would likely be the largest regulatory intervention in Big Tech history.

Google strongly opposed the proposal, calling it “radical” and “drastic” and saying it “risks harming consumers, businesses, and developers.”

Google has become the go-to search engine for nearly every Internet user around the world, accounting for approximately 90% of all online searches.

The Justice Department accused the company of using its Chrome browser and other products, such as the Android operating system, to direct users to its search engine, where it sells ads and makes money.

“Google’s illegal conduct continued for more than a decade and included many self-enhancement tactics,” the Justice Department said. in court filing.

This means potential competitors will not be able to gain a foothold in the online search market, the company said.

This lack of competition has allowed Google to charge unusually high prices for ads “while reducing the quality of ads and related services,” it added.

The Justice Department said it is considering “remedies that would prevent Google from using products such as Chrome and Play.” [its app store]Android lets you take advantage of Google Search and Google Search products. ”

The Justice Department plans to submit a more detailed set of proposals by November 20th.

Google will have until December 20th to submit its own relief proposal.

in blog post, LeeAnne Mulholland, Google’s vice president of regulation, said the recommendation amounts to “government overreach” and could lead to higher prices for consumers.

Mulholland acknowledged that Google makes its Chrome browser and Android operating system free because they are gateways to “enabling people to access the web and use our products.”

He warned that if it were to be separated from Google, it would have to start making its own profits, which would lead to higher prices.

Mulholland also claimed that by paying companies like Apple and Samsung billions of dollars a year to be the default search engine on their devices, they are effectively subsidizing their products.

Therefore, if they stop paying, the price of those products will go up, she said.

Google also cited a Wall Street Journal article claiming that the online advertising market is highly competitive. article That means more people are using TikTok and Amazon instead of search.

However, the same article states that Google still holds more than 50% of the advertising search market.

If the goal is to weaken Google’s grip on the search market, it will require more than just regulatory changes, said Xiaofeng Wang, principal analyst at technology consultancy Forrester.

“There will be more room for competitors, including smaller companies, to expand their market share, potentially creating a more diverse and competitive market,” she says.

“However, technological innovation and consumer adoption strategies, including marketing, will be critical to determining ultimate success.”

The outcome of the case could also set a precedent for regulation of other large American tech companies, Wang added.

“The U.S. is also suing Metaplatforms, Amazon.com, and Apple for illegally maintaining monopolies. So if Google’s case passes, it will affect more tech giants. “Maybe,” she says.