The U.S. Justice Department is contemplating the possibility of compelling Google to divest parts of its business, which could result in the first significant corporate breakup in decades and reshape one of the world’s most valuable tech giants.
On Tuesday, the Department of Justice and a coalition of state attorneys general unveiled a comprehensive plan for potential solutions to address Google’s monopolies in search and search advertising. You can view the full framework here.
Presented to U.S. District Judge Amit Mehta, who had previously ruled against Google in an antitrust case, the proposed remedies framework includes a range of options, from behavioral restrictions to more drastic structural measures.
The Department of Justice has outlined four key areas for remedies:
- Search Distribution: Limit default search agreements, pre-installations, and revenue-sharing deals. Consider structural measures to separate Chrome, Play, and/or Android from Google. Restrain Google’s control over emerging search technologies and educate users on making informed search engine choices.
- Data Access and Usage: Require Google to share its search index, data, algorithms, and AI models. Ensure transparency in search results, features, and ad ranking signals. Prohibit Google from using non-shareable data due to privacy concerns and reduce costs for rivals’ data retention.
- Extending Search Monopoly: Restrict Google from using contracts to impede rivals’ access to web content. Allow publisher websites to opt out of appearing in Google-owned AI products and training.
- Advertising Practices: Revise or restructure Google’s advanced advertising products and explore options for licensing Google’s ad feed separately from search results. Increase transparency for advertisers by providing detailed auction and monetization data.
In response to the Department of Justice’s proposal, Google criticized the plan as “radical and sweeping,” cautioning of potential adverse effects on American innovation and consumers.
Analysts at Bernstein warned that the remedy is “far-reaching” and could hinder Google’s efforts in the broader AI landscape, potentially putting them at a disadvantage in the AI battle.
More updates to come.
