Google Breakup Looms

The Justice Department has reiterated its stance that Google must break up its business, as per a recent filing. This decision comes after a federal judge ruled last year that the company had illegally abused its monopoly over the search industry. According to reports by The Washington Post and The New York Times, the Justice Department has reaffirmed its stance that Google will have to sell its Chrome browser. The DOJ had previously argued that selling Chrome would "permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet," as it said that selling Chrome would have a significant impact on the industry.

Proposed Remedies

The Justice Department has also retained a proposal from the Biden era that seeks to prevent Google from paying companies like Apple and Mozilla to make its search engine the default on their phones and browsers. However, it has removed a proposal that would have required Google to sell its stakes in AI startups. Instead, the government wants to mandate that Google notify federal and state officials before making investments in artificial intelligence. This comes after Financial Times reported that Google was investing an additional billion dollars in Anthropic.

Google’s Response

Google is expected to file its own proposal for alternative remedies. In its previous filing, the company stated that the Justice Department’s original remedies were excessive and reflected an "interventionist agenda" that went beyond the court’s decision. Google proposed allowing it to continue paying partners like Apple and Mozilla to offer Google Search, while also permitting them to form agreements with other partners across different platforms. For instance, Apple could offer different default search engines for iPhones and iPads, while browser companies could change default search engines every 12 months.

Implications and Future Developments

As The Post notes, the Justice Department’s filing could be an indicator of how the Trump administration will handle antitrust cases involving tech companies. The administration may take a strict approach, similar to the Biden administration, despite tech leaders supporting the new President and his policies. Google had donated to the Trump campaign and recently halted efforts to hire employees from diverse backgrounds. The House recently subpoenaed Alphabet and its CEO Sundar Pichai for communications between the company and the Biden administration regarding COVID-19.

Conclusion

Judge Amit Mehta, who originally ruled that Google was a monopolist, will hear both the government’s and the company’s remedies and decide on the final solutions for the case in April. The outcome of this case will have significant implications for the tech industry and antitrust regulations.