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Writer's pictureTyler White

DOJ Considers Breakup of Google: A Move Against Big Tech


The Department of Justice is taking into consideration a request for a federal judge to force Google to sell parts of their business, potentially leading to a breakup of one of the largest tech companies in the market, with 2% weight in the S&P 500. The breakup, if imposed, would address Alphabet’s dominance in the search market. Judge Amit Mehta may also mandate Google provides access to the data it utilizes for its search results as well as its AI products.


The DOJ stated, “We are considering both behavioral and structural remedies to prevent Google from leveraging products like Chrome, Play, and Android to favor Google search and related offerings.” This regulatory break up attempt is the most significant since the government’s unsuccessful attempt to break up Microsoft in 2002. Both the DOJ and the FTC have targeted Big Tech dominance, scrutinizing mergers and investments while accusing several of the nation’s largest companies of unlawfully controlling several markets.


Earlier this year, the Justice Department sued Apple Inc. for preventing innovation by not allowing its competitors to access its hardware and software capabilities. The FTC has inquired with Alphabet, Microsoft, and Amazon.com Inc. about their investments in AI startups as part of an investigation into how these partnerships affect overall competition.


The DOJ stated in its filing that Google has gained advantages in scale and data from its illegal distribution agreements with other tech companies, making its search engine the default option on smartphones and web browsers. 


The DOJ is hitting Google from three different directions. The Justice Department indicated it may require Google to allow websites more freedom to opt out of its AI products. The agency is also considering proposals concerning Google’s dominance in search text ads, which could include mandates for the company to provide more information and control to advertisers regarding ad placements. The department may also seek restrictions on Google’s investments in search competitors or potential rivals.


Google said that “the DOJ’s radical and sweeping proposals risk hurting consumers, businesses, and developers." Google shares dropped by as much as 2.8% on Wednesday. GOOG is currently Trading at $164.52.


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