US government considers a breakup of Google

For the first time since the breakup of AT&T into Baby Bells, the US government is considering dismantling another massive monopoly: Google. The Department of Justice suggested in a court filing that Google's search business could be separated from its other platforms like Android, Chrome, and the Google Play store. This move aims to prevent Google from favoring its search engine over competitors using its other products. The recommendation follows a federal judge's ruling that Google's search practices violated antitrust laws.

Google criticized the potential move as radical, warning it could degrade user experience, disrupt AI innovation, and compromise privacy by sharing user data with competitors. The company argues that the case involves a set of search distribution contracts, but the government's broader agenda could impact diverse industries and consumer choice.

Google's shares saw a slight dip before stabilizing, while the broader market edged upward. The Justice Department's case claims Google’s tactics limit consumer choice and stifle market innovation. Specific penalties under consideration include banning exclusivity deals, affecting smartphone agreements with firms like Apple.

Another potential remedy involves introducing a 'choice screen' on devices, allowing users to select their preferred search engine. The case also raises concerns about Google's dominance in artificial intelligence, as the large data sets it controls could cement its leadership. The government might allow websites to opt-out of contributing to Google's AI training or propose sharing AI models with rivals.

This case is regarded as the most significant tech antitrust action since the Microsoft case years ago. Despite intending to appeal the ruling, Google maintains its focus on developing useful products. The outcome could influence other ongoing antitrust cases against major tech companies like Amazon, Apple, and Meta.