Google Break-Up: US Regulator Could Force Search Giant To Sell Off Chrome, Stop Android Favour

Regulators have specifically targeted Google’s $26 billion annual spending on agreements to secure default search engine status across various devices.

The US DOJ’s demands could disrupt Google’s lucrative business model, which is projected to generate over $300 billion in revenue this year.

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US regulators are ramping up efforts to dismantle Google’s monopoly power, proposing a breakup of the tech giant that could see its Chrome web browser sold off and its Android software stripped of preferential treatment for its search engine. As reported by the Associated Press, the recommendations follow an August ruling that found Google guilty of maintaining an illegal monopoly in the search market over the past decade.

In a 23-page filing made on Wednesday, the Department of Justice (DOJ) outlined measures to curb Google's dominance. These include halting multibillion-dollar agreements that make Google the default search engine on devices like Apple’s iPhone and requiring Google to share search data with competitors. Regulators argue these steps are necessary to create a fair playing field and dismantle Google’s entrenched advantages.

The proposal builds on findings by US District Judge Amit Mehta, who concluded Google abused its market power. The hearings to determine Google's penalties will begin in April, with a decision expected before Labor Day. If the DOJ’s recommendations are adopted, Google will likely appeal, potentially extending a legal battle that has spanned more than four years.

Potential Impacts on Google’s Business

The DOJ’s demands could disrupt Google’s lucrative business model, which is projected to generate over $300 billion in revenue this year. Regulators have specifically targeted Google’s $26 billion annual spending on agreements to secure default search engine status across various devices — a practice central to Mehta’s concerns.

Additionally, the DOJ has suggested that Chrome, which commands a significant share of the browser market, should be spun off as a separate entity, while Android’s integration with Google’s search services should be dismantled. However, it remains uncertain whether Judge Mehta will back these recommendations, as breaking up Google could face significant legal hurdles.

Political Dynamics and Historical Context

The antitrust case has taken on political overtones, with the DOJ's approach influenced by Jonathan Kanter, the Biden administration’s antitrust chief. Kanter, working alongside FTC Chair Lina Khan, has taken a hardline stance against Big Tech, contributing to increased scrutiny of companies like Apple and Google. However, a potential change in administration could alter the trajectory of the case. Former President Donald Trump, who may return to office, has expressed reservations about a breakup but advocated for ensuring fairer practices.

The case draws comparisons to the landmark antitrust battle with Microsoft in the late 1990s, which initially sought to split the software giant. However, that breakup order was overturned on appeal, raising questions about whether a similar outcome could unfold in Google’s case.

As the legal proceedings continue, the DOJ’s proposed penalties aim to reset the competitive landscape in the tech industry. Whether these measures will succeed in reshaping Google’s dominance remains to be seen.