According to Bloomberg, The U.S. Department of Justice is exploring measures to address Google's search monopoly after a recent antitrust ruling found that the company violated competition laws. 

According to the court ruling, Google was found to be maintaining an illegal monopoly over internet search services. The court discovered that Google’s search dominance is fueled by billions in payments to secure default search status on devices like iPhones, and Samsung, and browsers such as Firefox.

The court's decision has prompted the Justice Department to deliberate on ways to address Google's dominance. 

What’s on the table?

Discussions involve potentially breaking up Google by separating key parts of its business.

The primary remedies involve separating its Chrome browser or the Android operating system from its search engine operations. The aim is to reduce Google’s control over the mobile ecosystem and foster competition.

Another possibility under consideration by the DOJ is the sale of Google Ads. In the judgment, District Judge Amit Mehta ruled that Google's strategy involved creating ad auctions with higher prices to boost revenue. 

Alternative scenarios

Less severe solutions for a break-up include mandating data sharing with Google’s search competitors. The action is to implement changes that allow users to easily switch search engines, and improve transparency around search engine choices.

What does this mean for Google?

The DOJ is considering banning exclusive contracts that give Google an unfair advantage, such as its agreements with Apple to be the default search provider. During the trial, it was revealed that Google paid Apple $20 billion to maintain its status as the default search engine on iPhones. 

The court is expected to scrutinize and potentially dismantle Google's exclusive agreements with Apple and Android manufacturers. If forced to terminate this deal, Google traffic might not be impacted right away. But it does open the door more for other companies, such as PerplexityAI and OpenAI, with SearchGPT, to have a better chance at launching a competitor search product.

Potential for market disruption

Speaking with Sherwood, an Antitrust Expert at Cornell University, Professor George Hay, argued that despite calls to break up Google, such drastic measures are unlikely. 

Historically, antitrust cases rarely result in the breakup of companies, and Google’s case is no exception. Instead, the court is likely to impose restrictions on exclusive agreements, which could lead to a more competitive search engine market, he explained. 

The next step

Judge Amit Mehta, overseeing the case, has set a deadline for September 4 to determine a remedy plan, with a hearing scheduled for September 6. While the court is likely to address the exclusivity agreements, any remedies or structural changes might take years to fully implement.

The outcome of this case could influence ongoing and future antitrust actions against other tech giants, such as Apple, Amazon, and Meta.