The Department of Justice is evaluating the possibility of dismantling Alphabet Inc. GOOGL GOOG subsidiary Google, as a response to antitrust violations. This development follows a recent court ruling that found Google guilty of leveraging its products to maintain a monopoly in the search market.
What Happened: The DOJ is exploring various measures to prevent Google from using its platforms like Chrome, Play, and Android to bolster its search engine dominance, according to a recent filing on Tuesday.
The DOJ said it was "considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants."
Potential remedies include imposing contract requirements, enforcing non-discrimination in product offerings, and implementing structural changes. The DOJ also suggests limiting default agreements and revenue-sharing deals, such as those with Apple Inc. and Samsung.
Google‘s Vice President of Regulatory Affairs, Lee-Anne Mulholland, criticized these recommendations in a blog post as “radical,” warning of potential unintended consequences.
In a related case, a U.S. judge has mandated Google to provide alternatives to its Play Store for app downloads on Android devices. Google currently holds a 90% market share in search, with “Google Search & Other” being a major revenue contributor.
Why It Matters: The DOJ’s consideration of breaking up Google comes amid ongoing legal battles and regulatory challenges. Recently, Google has been ordered to open its Play Store to competitors, a decision the company is appealing, arguing it would “undercut Android’s ability to compete with Apple’s iOS.”
Additionally, Google is enhancing its Android security features with AI-powered tools to combat phone theft, showcasing its commitment to innovation despite legal hurdles.
Meanwhile, Waymo, a subsidiary of Google parent Alphabet, is expanding its autonomous taxi services through a partnership with Hyundai, highlighting the company’s diversification efforts.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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