US DOJ Considers Breaking up Google Over Monopoly Concerns; Company Warns It Would Harm Consumers

Google is accused of using its products to unfairly dominate the online search market, which it controls at 90%.

By Thea Felicity

Oct 09 2024, 11:00 AM EDT

US-TECH-ANTITRUST-ADVERTISING — US Attorney General Merrick Garland gestures during a news conference at the Justice Department in Washington, DC, on January 24, 2023. STEFANI REYNOLDS/AFP via Getty Images

Earlier this year, a federal judge ruled that Google broke anti-trust laws by running illegal monopoly search engines. Now, the consequences are catching up.

As part of their penalty, the US government is seeking ways to break up Google into separate search engines to prevent them from stifling competition.

According to BBC, it was found that Google took part in illegal practices to dominate online search and lost its appealed case against it. The Department of Justice hopes to proceed with proposed actions with the approval of a judge, which will make it the biggest regulatory change in the tech industry.

Why the US Wants Google to Break Up

In an earlier report by VCPost, the DOJ accused Google of using its other products, like the Android OS and Chrome Browser, to direct internet users to its search engine. Besides already handling over 90% of all online searchers, this direct link will allow the company to earn money from ads.

DOJ also claimed that this practice made it impossible for competitors to enter the search engine market and, therefore, has allowed Google to charge higher prices for ads regardless of quality.

More ways to prevent Google from using its products to favor its search engine will be proposed by DOJ by November 20.

Can Google Be Split Up?

In response, The Independent shared that Google argued its extreme and negative impact on businesses, consumers, and developers. Separating their services would mean separated prices, leading to higher costs for users. The company further explained that they only offered free Chrome and Android to help users access the web and its services.

When it comes to the advertising industry, Google pointed out that this sector is competitive, and they are only holding over 50% of the ad search market.

Analysts believe breaking up Google is possible, but it doesn't guarantee competitors will overcome the problematic barrier the company has already set for decades. Smaller search engine companies must invest in innovation and million-dollar marketing strategies.