DOJ Considers Breaking Up Google; Alphabet Shares Fall 1.6%

Oct 9, 2024, 04:10 PM

The U.S. Department of Justice (DOJ) is considering a range of structural remedies to address Google's alleged monopoly in the search market. These measures include potentially breaking up the tech giant by divesting its Chrome, Android, and Play businesses to prevent Google from using these platforms to give its search engine an unfair advantage. Additionally, the DOJ is exploring restrictions on Google's use of contracts, monopoly profits, and other tools to control distribution channels. The DOJ's final proposal is expected by November 20. The potential breakup could also involve forcing Google to share users' search data with rivals and limiting its ability to use search results to train new AI models. Judge Amit Mehta is overseeing the case, which may also require Google to provide API access to its search indexes and AI-models. Google's response has been to label these proposals as 'radical and sweeping,' arguing that they could harm consumers, businesses, and developers. Alphabet shares have reacted negatively, falling by 1.6% following the news.