US Considers Splitting Up Google to Break Its Alleged Monopoly

The US Department of Justice is considering options that could include breaking up Google, after a judge ruled that the Alphabet unit had illegally monopolized online search advertising. The move comes after the judge ordered Google to cease its monopolistic practices. The tech giant, valued at over $2 trillion, has gained a dominant position in the Android market through lucrative offers.

Divesting Google from Android devices is a key part of this radical proposal. A Justice Department spokesperson said the court’s decision will lead to appropriate steps and directions if the judge finds unfair suppression of competitors.

Neil Chilson, former chief technologist for the FTC, dismissed the idea of breaking up Google as “total wishcasting”. He stated, “Nothing in Judge Mehta’s rather standard antitrust approach suggests a breakup is a plausible remedy. A breakup wouldn’t address the core conduct that the court found problematic: exclusive contracts for default placements.” Last week’s verdict found Google guilty of violating antitrust laws and illegally spending billions to maintain its monopoly.

Federal antitrust authorities have previously sued Meta Platforms, Amazon.com, and Apple in the past four years, alleging illegal monopolistic practices. In 2004, Microsoft settled with the Justice Department after claims that it forced users to adopt Windows and Internet Explorer.

Alden Abbott, former general counsel for the FTC, stated, “The court of appeals in US v Microsoft (2001) flatly rejected breaking up that company, even though its illegal monopolizing conduct was not found by the court to create beneficial efficiencies. Breaking up Google probably will not be ordered. That is fortunate. A Google breakup would be one of the most economically destructive acts in the annals of American antitrust.” Abbott believes that divestiture of Google could have devastating consequences for businesses.