The US Department of Justice (DOJ) has launched an effort to curb Google's dominance in the search engine market, a proposal that could reshape the landscape for tech giants.
In an October 8 filing, the DOJ called for a breakup of Google's search division as part of its ongoing antitrust lawsuit, accusing the company of maintaining an illegal monopoly.
DOJ takes aim at Google
The DOJ’s proposal seeks significant changes to break Google’s stranglehold on search and advertising. It includes structural changes, such as breaking up parts of Google’s search operations, and behavioral changes aimed at protecting consumers and promoting competition.
A key aspect of the proposal is to prevent Google from using its dominance to control emerging technologies like artificial intelligence.
The DOJ also proposed that Google share search and index data with rivals, and allow websites to opt out of having their content used to train AI models.
Furthermore, the DOJ recommends the establishment of a “court-appointed technical committee” to oversee Google’s compliance with these new regulations.
Source: Adam Kovacevich
While no solution has been set as a standard, all are being considered in the DOJ proposal.
Google responded on October 9 with a blog post defending its business practices and warning of broader consequences for the tech industry.
“Overzealous government intervention in a rapidly growing industry could have unintended negative consequences for American innovation and American consumers.”
However, this is not the only time big tech companies have been criticized for their monopolistic business practices over the past year.
Why does this happen?
The DOJ's action against Google is the culmination of years of scrutiny over the company's search monopoly, maintained through exclusive deals with web browsers and phone makers.
These agreements ensure Google's search engine remains the default choice for billions of users, stifling competition and innovation in the digital ecosystem.
As noted in its proposal, the DOJ argues that this stranglehold limits consumer choice and gives Google disproportionate control over the flow of information. On September 23, the DOJ filed a similar lawsuit against payments giant Visa, calling its tactics a payments monopoly.
However, in the case of Google and the big tech landscape, this doesn't stop at search engines.
Big Tech Under Surveillance
Regulators are increasingly concerned about the role of big tech companies in shaping the future of artificial intelligence, which is predicted to drive the next wave of technological innovation.
One concern is that Google’s dominance in search could translate into monopoly control over AI. The more data it collects, the more powerful its AI models become, raising concerns about competition in the rapidly growing field of generative AI.
Regulators in the European Union have now launched investigations into major tech companies, including Apple, Google and Meta, over violations of the Digital Markets Act by March 2024.
In August 2024, UK regulators investigated web services giant Amazon over its $4 billion investment in Anthropic AI, one of the industry's leading models.
In its response to the DOJ, Google warned that breaking up its search division would hurt the company's AI efforts and overall profits, ultimately making it harder to compete globally.
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