Google's parent company Alphabet Inc. (GOOG) saw its stock plummet 5.04% on Thursday as the U.S. Department of Justice (DOJ) proposed drastic measures to address the tech giant's illegal monopoly in online search.
In August 2024, U.S. District Judge Amit Mehta ruled that Google had violated antitrust laws by using its dominance in search to stifle competition. Google was found to have paid billions of dollars to smartphone makers and other partners to ensure its search engine was the default option on their devices, making it nearly impossible for rivals to gain market share.
To remedy this, the DOJ is urging Judge Mehta to force Google to sell off its popular Chrome web browser. Officials argue that Chrome's integration with Google Search has helped cement the company's monopoly. The playing field is not level because of Google's conduct, and Google's quality reflects the ill-gotten gains of an advantage illegally acquired. The remedy must close this gap and deprive Google of these advantages,
the DOJ stated in its filing.
Other proposed remedies include:
- Prohibiting Google from making deals to be the default search engine on devices, including its multi-billion dollar agreements with Apple.
- Requiring Google to share its search data and results with competitors.
- Barring Google from giving preferential treatment to its own search engine and products on Android.
- Forcing Google to sell its Android operating system if the other remedies fail to restore competition.
Google has vowed to appeal any ruling against it, with Chief Legal Officer Kent Walker calling the DOJ's proposal staggering
and claiming it would break a range of Google products.
The company argues that the proposed remedies go beyond the court's decision and could harm consumers and American technological leadership.
