The US Department of Justice (DOJ) is reportedly considering breaking up Google as an antitrust measure.

As Bloomberg reported on Tuesday, the DOJ is considering dismantling the tech giant following a groundbreaking court ruling that found Google monopolised the online search market. The publication cited sources close to the discussions.

The court verdict last week concluded that Google had breached antitrust laws by spending billions to establish an unlawful monopoly, positioning itself as the default search engine globally. Google allegedly paid businesses as much as $26 billion to ensure its search engine was the default on devices and web browsers. $20 billion of that reportedly went to Apple.

According to Bloomberg’s sources, it is just one of the options the DOJ is evaluating as an antitrust tactic. Alternative measures could involve mandating Google provide competitors with greater access to its data and implementing safeguards to ensure a level playing field in developing AI technologies.

However, just as the landmark court judgement marked a major victory for federal agencies seeking to challenge the dominance of tech giants in the market, breaking up Google would be a seismic rebuttal to perceived tech overreach.

The move would represent the first significant attempt by the US to dismantle a corporation on the grounds of illegal monopolisation since the unsuccessful bid to break up Microsoft in the early 2000s. A mandated separation of Google would be the most significant breakup of a US business since the disintegration of AT&T in the 1980s.

A Google spokesman declined to comment to Bloomberg, as did a Justice Department spokeswoman.

More Details On The Ruling And The DOJ’s Potential Move To Break Up Google

The US is expected to pursue a prohibition on the type of exclusive contracts that were central to its Google lawsuit. Should the Justice Department proceed with a divestiture strategy, Bloomberg’s sources suggest the likeliest candidates for separation include the Android operating system, Google’s Chrome web browser, and potentially AdWords, Google’s text advertising sales platform.

The mooted possibility of breaking up Google gained momentum following Judge Amit Mehta’s ruling on August 5. Mehta found Google guilty of illegally monopolising online search and search text advertising markets.

Google plans to appeal the decision, but Judge Mehta has directed both parties to commence planning for the trial’s second phase, which will address the government’s suggestions for re-establishing competition, including the potential request for a breakup. The US government’s proposal will require Judge Mehta’s approval, which would compel Google to comply.

Justice Department lawyers have consulted with organisations impacted by Google’s business practices and have expressed concerns that Google’s dominance in search could unfairly advantage its AI technology development. As a corrective measure, the government may intend to prevent Google from requiring websites to contribute content to its AI products as a condition for appearing in search results.

Regulatory Bodies Vs Big Tech Monopolies

The court judgement around Google’s monopoly of search is groundbreaking, but in another sense, it’s a milestone on a long and winding road of closer scrutiny and more considered counter-action to the major tech giants’ market dominance.

There has been momentum building for several years now. It isn’t the only antitrust case against Google currently. Judge Mehta’s ruling aligns with a December verdict by a California jury that found Google monopolised Android app distribution. While the judge in that case has not yet settled on a remedy, the Federal Trade Commission (FTC) submitted a brief on the case this week asserting that Google should not be permitted to benefit from its illegal monopolistic practices.

Meanwhile, in the past four years, federal antitrust regulators have initiated lawsuits against Meta Platforms, Amazon.com, and Apple, alleging that these companies have unlawfully sustained their monopolistic positions.

Microsoft is currently facing several antitrust cases. In June, the European Commission issued a statement of objections to the Redmond-based vendor over “possibly abusive” practices in bundling Teams and Office together.

In the latest development of the Teams and Office bundling antitrust case, the EU’s antitrust regulatory body has released a preliminary finding suggesting that Microsoft may have created a competitive imbalance.

The issue dates back to 2017 when Microsoft integrated Teams into Office 365, eventually replacing Skype for Business. Regulators are now examining whether this move has restricted business customers’ options by making Teams a default component of Office 365 and Microsoft 365 subscriptions without providing a clear alternative. This preliminary assessment will explore whether such practices could hinder market competition.

Microsoft is also having its relationship with AI startup OpenAI probed by three regulatory bodies: the European Commission, the FTC and the UK’s Competition and Markets Authority (CMA). Microsoft has invested $13 billion in OpenAI over the past five years and secured a nonvoting position on its board earlier this year.

How Could A Google Breakup Impact UC and Collaboration?

A DOJ-mandated breakup of Google’s Android, Chrome, and AdWords divisions would hugely impact the UC and collaboration space. Fragmentation of Android could result in multiple OS versions, complicating app development and integration for UC platforms. A divided Chrome browser market might slow innovation in web-based UC tools, requiring broader cross-browser support and complicating the consistency of user experiences.

AdWords’ breakup could lower advertising costs and cultivate competition but might reduce ad targeting efficiency, impacting marketing strategies for UC companies. Maintaining interoperability would potentially be more complex, with higher development costs and slower innovation. However, these changes could bolster industry-wide adoption of universal standards, potentially benefiting smaller players and fostering new partnerships within the UC ecosystem.

Lastly, of course, is the precedent that a Google breakup might set for UC, collaboration and cloud businesses — specifically the colossal players like Microsoft and Amazon/AWS. If successful, similar antitrust actions could taken against other companies, signalling a shift towards limiting market dominance, encouraging competition, and breaking up integrated ecosystems across the tech industry.



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