After the court recognized Google as a monopolist in the online search marketThe U.S. Department of Justice is considering the possibility of splitting the company as one of the options for further developments.
This could be the first split of a company due to illegal monopolization since the failed attempts to split Microsoft two decades ago. At the same time, less severe options are also being considered, such as forcing Google to share more data with competitors and measures to prevent it from gaining an unfair advantage in artificial intelligence products.
Nevertheless, the government will likely seek a ban on exclusive contracts, which were at the center of the case against Google. If the Justice Department insists on a split, the most likely units to be sold are the Android operating system and the Google Chrome web browser, according to sources with knowledge of the matter. Officials are also considering a possible forced sale of AdWords, the platform the company uses to sell text and display ads.
Abandoning the Android OS, which is used on about 2.5 billion devices worldwide, is one of the remedies most often discussed by the Justice Department. The fact is that Google requires device manufacturers to sign agreements to install its applications, such as Gmail, Google Play Store, etc. These agreements also require that the Google search widget and Chrome browser be installed on devices in such a way that they cannot be removed, effectively preventing competition from other search engines.
Discussions at the Justice Department intensified after Judge Amit Mehta’s August 5 ruling that Google had illegally monopolized the online search and search text advertising markets. Google said it would appeal the ruling. However, Mehta ordered both sides to start planning for the second phase of the case, which will include the government’s proposals to restore competition, including a possible request to break up the company.
The US government’s plan still needs to be accepted by Mehta before he can order the company to implement it. The forced separation of Google could be the largest among US companies since the AT&T split in the 1980s.
Source: bloomberg
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