DOJ Explores Breaking Up Google After Antitrust Ruling

The U.S. Department of Justice (DOJ) is exploring the possibility of breaking up Alphabet's Google following a recent court ruling that found the tech giant guilty of illegally monopolising the online search market.

This significant ruling, delivered last week, marks a major victory for federal efforts to curb the dominance of Big Tech companies.

Potential Remedies and Implications

Several options are under consideration by the DOJ. Among these is the possibility of forcing Google to divest key assets, such as its Android operating system or its Chrome web browser.

Additionally, the DOJ is looking into the possibility of requiring Google to share data with competitors and implementing measures to prevent it from gaining an unfair advantage in artificial intelligence products.

The divestment of Google's lucrative advertising arm, Google Ads, is also being discussed.

Historical Context and Industry Impact

This legal battle against Google is part of a broader effort by federal antitrust regulators, who have also targeted other tech giants like Meta, Amazon, and Apple in recent years.

The last time a similar situation occurred was with Microsoft in 2004, which avoided a breakup by settling with the DOJ over its Internet Explorer browser's dominance on Windows systems.

What’s Next?

The idea of breaking up Google might seem drastic, but it’s one of several strategies being considered.

Other options include banning Google from entering default search agreements, like the $19 billion deal with Apple, and limiting its ability to leverage AI products unfairly.

Notably, YouTube, a significant revenue driver for Alphabet, has not been mentioned in these discussions, even though it generated over $31 billion in advertising revenue in 2023.