Justice Department calls for breakup of Google and sale of Chrome
U.S. regulators need a federal judge Break up Google It prevents the company from continuing to stifle competition through its dominant search engine after the court found it had abused its monopoly position by maintaining it over the past decade.
The breakup proposal was laid out in a 23-page Justice Department filing late Wednesday that calls for Google to sell off its industry-leading Chrome web browser and implement policies aimed at blocking its Android smartphone software from biasing its search engine. restrictions.
The recommended penalties underscore the view by regulators under President Joe Biden that Google should be severely punished following sanctions imposed by U.S. District Judge Amit Mehta in August. as a monopoly. Justice Department policymakers who will take over the case when President-elect Donald Trump takes office next year may not be so strident. Hearings in a Washington, D.C., court on Google’s penalty are scheduled to begin in April, and Mehta plans to issue a final decision before Labor Day.
If Mehta accepts the Justice Department’s recommendation, Google will almost certainly appeal the penalty, prolonging a legal battle that has dragged on for more than four years.
In addition to seeking a breakup of Chrome and bundling of Android software, the Justice Department wants a judge to block Google from striking a multibillion-dollar deal to lock its dominant search engine as the default option on Apple’s iPhones and other devices.
Regulators also want Google to share data collected from people’s queries with its rivals, giving them a better chance of competing against the tech giant.
The measures, if ordered, could upend a business that is expected to generate more than $300 billion in revenue this year – the money-making machine of Google parent Alphabet Inc.
“As a result of Google’s conduct, the playing field has not been level and Google’s quality reflects an ill-gotten gain to illegally gain an advantage,” the Justice Department claimed in its recommendation. “Remedies must close this gap and strip Google of these advantages.”
It’s still possible that the Justice Department will ease its attempts to break up Google, especially if Trump takes the widely expected step of replacing Jonathan Kanter, the Biden appointee who oversees the agency’s antitrust division.
Although the case against Google was initially filed in the final months of Trump’s first term, Kanter oversaw the high-profile trial that ultimately led to Mehta’s ruling against Google. Kantor, working with FTC Chairwoman Lina Khan, has taken a tough stance against Big Tech, triggering other crackdowns on industry giants like Apple and stymieing business deals over the past four years.
Trump recently expressed concern that a breakup could destroy Google, but did not elaborate on other punitive measures he might have in mind. “What you can do without breaking it is make sure it’s more equitable,” Trump said last month. Former Republican congressman Matt Gaetz, whom Trump nominated as the next U.S. attorney general, previously said has called for breaking up big tech companies.
Gates, a Trump firebrand, faces a tough confirmation hearing.
This latest filing gives Kanter and his team a final chance to spell out what they believe is needed to restore search competition. Justice first raised the idea of a breakup six weeks ago during an initial outline of potential penalties.
But Kanter’s proposal has already raised questions about whether regulators are seeking to impose controls beyond the issues covered by last year’s trial and the Mehta ruling.
Banning the default search deal that Google currently pays more than $26 billion a year to maintain was one of the main practices that dogged the Mehta ruling.
It’s unclear whether the judge will accept the Justice Department’s argument that Chrome needs to be spun off from Google and Android should be separated from the company’s other services.
The attempt to break up Google recalls the initial similar punishment Microsoft received a quarter-century ago after another major antitrust trial, in which a federal judge ruled that the software maker illegally used its Windows operating system for PCs. to stifle competition.
However, an appeals court overturned an order that would have broken up Microsoft, a precedent that many experts believe will make Mehta reluctant to follow a similar path in the Google case.
