Deepshikha Maan, Jadetimes Staff
D. Maan is a Jadetimes news reporter covering Asia
The U.S. government contemplates dismantling Google due to antitrust infractions.
The U.S. government is considering the dissolution of Google, the largest search engine globally, in light of allegations by the Department of Justice (DOJ) that the business has inflicted "pernicious harms" on American consumers. This evaluation follows an August court verdict that deemed Google culpable of suppressing competition in the online search sector.
Should the DOJ proceed with its proposed remedies and secure court permission, it would be one of the most consequential regulatory interventions in the annals of the tech industry.
Will this strategy diminish Google's preeminence?
Xiaofeng Wang, a principal analyst at Forrester, observes that regulatory interventions may be insufficient to diminish Google's supremacy in the search market. "Allowing entry for competitors, including smaller entities, may cultivate a more varied and competitive market," Wang elucidates. She emphasizes that technical advances and good consumer adoption techniques will be crucial for enhancing competition.
The case's conclusion may provide a precedent for the regulation of other significant technology firms. The United States has filed a lawsuit against Meta, Amazon, and Apple, alleging that they uphold unlawful monopolies," Wang states. "Should the Google case prevail, it may influence other technology behemoths."
Google's Rebuttal to the Allegations
Google has vehemently rejected the DOJ's proposed remedies, labeling them as "radical" and cautioning that they may adversely affect customers, businesses, and developers. The business, which dominates over 90% of the worldwide internet search market, is alleged to exploit its ancillary products, like the Chrome browser and Android operating system, to direct users to its search engine for advertising revenue.
The DOJ contends that Google's strategies have suppressed competition, enabling the business to impose elevated pricing for advertisements while diminishing service quality. The government is contemplating actions to inhibit Google from leveraging its products such as Chrome, the Play Store, and Android to confer an inequitable advantage to its search enterprise.
Lee Anne Mulholland, Google’s vice president of regulatory relations, has countered these assertions, labeling them as "government overreach." She contends that the separation of products such as Chrome and Android from Google may result in increased costs for customers, as these products would be required to independently earn income.
Google asserts that the internet advertising business is competitive, referencing alternatives such as TikTok and Amazon. Reports indicate that Google continues to dominate over fifty percent of the advertising search market.
The DOJ is anticipated to present comprehensive suggestions by November 20, while Google is scheduled to submit its counter-proposals by December 20.
