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The U.S. Department of Justice has submitted recommendations in the ongoing antitrust trial against Google, proposing structural remedies that could lead to the breakup of the company. These measures are aimed at addressing Google’s monopoly in the search engine market, following a court ruling earlier this year.
DOJ Proposes Google’s Search Engine Spin-Off in Response to Court Ruling on Monopoly Practices
The U.S. Department of Justice (DOJ) is advancing with severe remedial recommendations in an ongoing high-profile trial, which appears to increase the antitrust pressure on Google. According to Wccftech, the proposed course of action by the Department of Justice (DOJ), if approved by the court, could result in the dissolution of Google, with its search engine business being spun off as a distinct entity.
To provide context, the U.S. District Court for the District of Columbia determined in August that Google maintains a monopoly in the search engine market, substantiated by substantial barriers to entry. The court's ruling concentrated on Google's exclusive search agreements with Apple's iPhones, iPads, and various Android devices, which were determined to have reinforced the company's dominant position in the search engine market.
The court also emphasized Google's role in the general search text advertising market, where advertisements are displayed alongside search results, in addition to its control over search engine dominance. Nevertheless, the court concluded that general search advertising is not a distinct market, reducing the likelihood of penalizing Google for its monopoly in this sector.
DOJ Suggests Structural Remedies, Including Possible Google Breakup, as Antitrust Case Moves Forward
After the court's decision, Judge Amit P. Mehta directed the Department of Justice to develop specific remedies to resolve Google's monopolistic practices. The Department of Justice has now submitted its recommendations, which include the potential for "structural requirements" that could result in the dissolution of Google:
“The remedies required to prevent and restrain monopoly maintenance in each area may include contract requirements and prohibitions, non-discrimination product requirements, data and interoperability requirements, and structural requirements.”
These structural remedies are perceived as a significant stride toward the technology behemoth's dissolution. However, the Department of Justice intends to refine its recommendations in November 2024, with a final proposal anticipated by March 2025. If the court approves a separation, it could still be years before such a dissolution occurs, as Google is expected to appeal any adverse rulings.
