A person looking at what to know about Google's antitrust battle

What to Know About Google’s Antitrust Battle

Earlier this month, a judge ruled that Google is a monopolist. Now, the real challenge begins: How can the search giant’s dominance be addressed to restore competition? The first step in this process starts next week when the judge will hold a hearing to explore potential solutions.

This won’t be a simple task. Judge Amit Mehta of the Federal District Court in D.C. faces a variety of options. He could restrict Google’s deals and major companies like Apple, break off parts of Google’s empire, such as Chrome or Android, into separate companies, or even introduce entirely new remedies. How he chooses to curb Google’s power could have significant implications across the tech industry, much like the antitrust case against Microsoft two decades ago.

The timing of this case adds another layer of complexity. As corporations introduce new AI technologies to handle search queries, the nature of search is undergoing significant changes. Google is expected to appeal no matter the outcome, setting the stage for further legal battles.

In this post, we’ll examine the options available to the judge and analyze the pros and cons of each approach.

What Are the Antitrust Issues?

At the first hearing on remedies—set for next Friday—the Justice Department is unlikely to present a fully formed plan, as it’s still early in the process. Instead, this session will allow Judge Mehta to outline his objectives.

The Justice Department’s goal is to break up Google, but there are less drastic measures in consideration. Mehta’s ruling could guide the choice of remedies, which could be applied individually or in combination. In his decision, Mehta highlighted several behaviors that violate antitrust laws:

  1. Deals That Prioritize Google’s Search Engine on Smartphones: Google has been paying Apple and other companies around $20 billion annually to make Google Search the default option, such as when an iPhone user conducts a search in Safari. Mehta pointed out that this practice illegally helped Google maintain its dominance. The judge could ban such deals, benefiting rivals like Microsoft’s Bing or DuckDuckGo. However, even if such deals are prohibited, Apple could still choose to use Google as its default search engine if it wishes.
  2. Imposing Google’s Search Engine on Android Users: Following a 2020 antitrust ruling in Europe, Google introduced a screen allowing Android users to select their preferred search engine. A similar measure could be mandated in the U.S.
  3. Google’s Massive Data Advantage: Google’s two decades of search data provide a significant edge, allowing it to deliver better search results than its competitors. This data advantage reinforces Google’s dominance. Some antitrust advocates suggest that Mehta should force Google to share this data with its rivals to level the playing field. However, consumers might be uncomfortable knowing their search histories are being shared with other tech companies.
  4. Google Controls 90% of the Search Market: Mehta could require Google, valued at $2 trillion, to divest key assets such as its Chrome browser or Android operating system and prohibit Google from setting its search engine as the default on these platforms.

Balancing Competition and Market Impact

Judge Mehta must consider the impact on Google and how his decisions will affect the broader market. For example, if he forces Google to sell Android, what would happen if another major tech company, like Microsoft or Meta, acquired it? The judge needs to ensure that his rulings promote competition without creating new market distortions.

Mehta also must consider public reaction. How will consumers respond if Google becomes more challenging to access or if using its services comes with a cost?

The timeline for resolution is uncertain. It could take three months to over a year to determine Google’s fate, especially as the company is expected to appeal. A similar situation occurred in 2000 when the decision to break up Microsoft was overturned a year later. This case could drag on into the late 2020s.

Meanwhile, Google is facing another antitrust battle. A case over allegations that the company monopolized the online advertising market is set to begin next month.

Related Developments

The Google antitrust case has sparked additional legal challenges. On August 28, 2024, Yelp sued Google, accusing the company of unfairly favoring its local listings over Yelp’s in search results.

Google’s road ahead is uncertain, and the decisions made in this case could shape the tech industry’s future for years to come.

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