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Google Faces Antitrust Remedies: Potential Breakup on the Horizon

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the staff of the Ridgewood blog

Ridgewood Nj, The Department of Justice (DOJ) has announced that it is considering several remedies following its ruling that Google holds a monopoly in online search and text advertising. These potential remedies could have a significant impact on the tech giant’s business operations. The options being considered include both behavioral and structural changes, which could involve everything from contract restrictions to a forced breakup of Google’s business.

Among the behavioral remedies, the DOJ is exploring measures such as contract requirements and prohibitions, including banning or limiting default agreements, as well as imposing non-discrimination product requirements and data-sharing obligations. These could prevent Google from entering into exclusive contracts with device makers, such as the $20 billion it reportedly pays Apple annually to ensure its search engine is the default on Apple devices.

The DOJ is also considering structural remedies—the most drastic of which is a proposal to break up Google. This could result in the forced sale of certain divisions of the company, similar to what happened in the 1980s when AT&T was split apart. The DOJ’s aim is to curtail Google’s control over the online search market and restore competitive balance.

The path to implementing these remedies will be a long one. Judge Amit Mehta, who is presiding over the case, is expected to make a ruling on the remedies by August 2025. However, an appeal from Google could delay any real impact for several years.

Google has warned that a breakup could lead to service disruptions for billions of users, an argument reminiscent of the 1999 antitrust case against Microsoft, which ultimately did not result in a breakup but imposed restrictions on the company’s business practices.

It’s important to note that this ruling is separate from another DOJ antitrust suit targeting Google’s advertising business. Closing arguments for that trial are expected later this year, marking yet another potential challenge for the tech giant.

As the legal battle unfolds, Google’s future could be reshaped, potentially leading to the most significant antitrust action since AT&T’s breakup more than 40 years ago.

 

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