- The U.S. Department of Justice will propose remedies by December to address Google’s illegal monopolisation of the online search market, potentially including business divestments or payment restrictions.
- Google plans to appeal the ruling and gather data from Microsoft and OpenAI to counter claims related to AI search integration.
OUR TAKE
The upcoming remedies in Google’s search monopoly case could reshape both its internal operations and the wider tech ecosystem. The proposed solutions, such as breaking up business units or ending exclusive deals, are crucial to restoring competition. However, the real challenge lies in whether these actions will truly curb Google’s dominance.
–Jasmine Zhang, BTW reporter
What happened
The U.S. Department of Justice plans to issue a proposal by December outlining measures Google must take to restore competition in the online search market after a judge ruled it had illegally monopolised the space. Prosecutors hinted the remedy could involve addressing Google’s integration of AI into search, specifically mentioning its rebranded Bard AI, now called Gemini.
Potential remedies may include breaking up parts of Google’s business, such as the Android mobile operating system, or ending payments to ensure Google remains the default search engine on devices. Google’s attorney requested a more detailed proposal and indicated plans to gather information from Microsoft and OpenAI for a counter-argument.
Google has stated it plans to appeal the ruling. U.S. District Judge Amit Mehta could hold a hearing in spring 2024, aiming for a ruling by next August.
Also read: EU seeks feedback on Google’s fair competition proposals
Also read: Google to open second data centre in Latin America with $850M investment
Why it’s important
With the U.S. Department of Justice poised to deliver a comprehensive proposal by December, potential outcomes include Google being forced to break up parts of its business, like the Android operating system, or stopping its massive payments to maintain default search engine status on devices.
This case is about restoring competition in an ecosystem Google has long dominated. Judge Mehta’s ruling already outlined Google’s use of exclusive agreements with device makers to stifle rivals, depriving competitors like Bing of the user scale necessary to innovate effectively. Remedies could thus include curbing these exclusivity deals or requiring Google to open up more of its data, but the bigger question remains: will these measures be enough to dismantle Google’s grip on the market?
