DOJ Mulls Google Breakup; Google Calls Proposed Android/Chrome Spinoff 'Radical'

The U.S. Department of Justice (DOJ) has proposed a series of antitrust recommendations for Google, including the company divest its Chrome browser and Android operating system. However, Google has pushed back strongly against these proposals, describing them as "radical and sweeping."

The DOJ submitted a 32-page document in court outlining potential options for the judge to consider as the antitrust lawsuit enters the remedy phase.

The document says plaintiffs are considering remedies that would limit or end Google's use of contracts, monopoly profits, and other tools to control or influence longstanding and emerging distribution channels and search-related products (e.g., browsers, search apps, artificial intelligence summaries and agents).

"Plaintiffs are evaluating remedies that would, among other things, limit or prohibit default agreements, preinstallation agreements, and other revenue-sharing arrangements related to search and search-related products, potentially with or without the use of a choice screen," the filing said.

"Similarly, Plaintiffs are considering behavioral and structural remedies that would
prevent Google from using products such as Chrome, Play, and Android to advantage Google
search and Google search-related products and features—including emerging search access
points and features, such as artificial intelligence—over rivals or new entrants. Such
consideration is faithful to the Court's findings," the filing added.

The agency stated it will present a more detailed proposal on remedies next month, and Google may file its remedies in December, CNBC reported.

In August this year, a federal judge held that Google, which processes 90% of U.S. internet searches, enjoys an illegal monopoly in the search engine market, following the antitrust lawsuit the DOJ filed against the company in 2020.

The DOJ alleged that Google manipulated business dealings to ensure its search engine's dominance in the market. Additionally, Google violated Section 2 of the Sherman Act, which outlaws monopolies, the lawsuit stated.

The federal judge ruled in favor of the Justice Department, after a 10-week trial.

Prosecutors said the proposals also aims to prevent Google's past dominance from extending into the rapidly growing AI sector. The Justice Departent is also considering seeking a court order requiring Google to share its search indexes, data, and AI models with competitors.

The justice department has also proposed to "prohibit Google from using or retraining data that cannot be effectively shared with others on the basis of privacy concerns."

"Fully remedying these harms requires not only ending Google's control of distribution today, but also ensuring Google cannot control the distribution of tomorrow," the Justice Department said.

Responding to the DOJ's submissions, Google Vice President of Regulatory Affairs Lee-Anne Mulholland stated the "radical and sweeping" proposals will harm consumers, businesses and developers.

"This case is about a set of search distribution contracts. Rather than focus on that, the government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness," Mulholland said in a blog post

She added Google has invested billions in Chrome and Android, and breaking them would raise device costs, weaken Android, and harm competition with Apple's iPhone and App Store.

"Make no mistake: Breaking them off would change their business models, raise the cost of devices, and undermine Android and Google Play in their robust competition with Apple's iPhone and App Store," Mulholland pointed out.

DOJ's proposals were cheered by Google's smaller competitors such as reviews site Yelp and rival search engine company DuckDuckGo.

Yelp favored separating Chrome browser and AI services from Google, while seeking a ban on Google prioritizing its local business pages in search results.

According to legal experts, Google may not be forced to go for a break-up, instead the court may seek the tech company to avoid certain exclusive agreements such that it has with Apple. At the most, court may direct Google to make it easier for users to switch to other search options.

As the recommendations await court's approval, Google will likely appeal, leading to the process extending for years.

"This is the start of a long process and we will respond in detail to the DOJ's ultimate proposals as we make our case in court next year," Mulholland said.