The tech world is closely watching as Google navigates the aftermath of a significant legal ruling. In August, a U.S. judge determined that the company had illegally monopolized online search, sparking concerns over its dominance. Now, with the U.S. government pushing for more drastic measures, the future of Google’s business is uncertain.
The U.S. Department of Justice (DOJ) has requested that U.S. District Judge Amit Mehta consider forcing Google to break up its business to reduce its stranglehold on the search engine market. One of the more extreme proposals is to have Google sell its Chrome browser, which serves as the primary gateway to its search engine. Chrome is the world’s most popular web browser, and forcing its sale could significantly alter the way users interact with Google’s services.
The DOJ also suggested that Google divest its Android operating system, which powers the majority of smartphones worldwide, as a means of preventing the company from promoting its search engine over competitors’. While these measures would be drastic, the government has also proposed “behavioral remedies,” such as restrictions on how Google can pay other companies, like Apple, to have its search engine set as the default on devices.
For instance, Google pays Apple billions annually to make its search engine the default on Apple devices like iPhones and Macs. If these payments were curtailed, it could potentially open the door for competitors like Microsoft’s Bing to gain ground. However, the transition would not be simple, as Google’s search engine is deeply ingrained in daily internet use, and many users are unlikely to switch easily.
Industry analysts suggest that any disruption to these lucrative partnerships could have significant ripple effects, especially for companies like Apple, which earned an estimated $20 billion from Google in 2022. Dipanjan Chatterjee from Forrester Research noted that Apple, known for its commitment to customer experience, will likely develop a “Plan B” if the case leads to changes in how search engines are selected.
Another potential remedy being discussed is the implementation of a “choice screen,” similar to what has been mandated in Europe. Under this system, users would be prompted to select their preferred search engine when setting up a new device or browser. While this could level the playing field, experts doubt it would cause many users to abandon Google, given the company’s dominance and reputation for reliable search results.
The legal battle is expected to continue for years, drawing comparisons to Microsoft’s lengthy antitrust case in the late 1990s and early 2000s. In that case, the company faced a similar ruling but ultimately reached a settlement after a drawn-out appeal process. With Google now in the hot seat, it remains to be seen what long-term impact this case will have on its operations and the broader tech industry.
