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| 8.14.24

DOJ Considers How To Handle Google Monopoly After Federal Ruling

Should Big Tech's power be reined in?

Updated August 14, 2024

  • The Department of Justice and state attorney generals are said to be considering how to handle Google's monopoly on online search after a federal judge found the company guilty of antitrust law violations last week. Various proposals include breaking off parts of the company—such as its Chrome browser or Android smartphone operating system—, forcing Google to make its data available to its rivals, or mandating that it abandon deals to make Google the default search option—such as with the iPhone. 
  • Sources close to the case said government officials will be meeting with other companies and experts to discuss the options to limit Google's power.
  • While Google has yet to comment on the DOJ's actions, the company pledged to appeal the ruling.  

What's the story?

"After having carefully considered and weighted the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly."

  • This significant ruling is a win for American regulators attempting to rein in the power of tech giants in the 21st century. 

The impact to other antitrust lawsuits

  • Judge Mehta's ruling will likely impact other government antitrust lawsuits against Apple, Amazon, and Meta, the parent company of Facebook, Instagram, and WhatsApp. 
  • The DOJ argued that by paying billions of dollars to be the automatic search engine, as Google has done, the company denies its competitors the opportunity to build their business to the scale required to be a competitor of Google. 

Amazon

  • Amazon is also facing an antitrust lawsuit filed by the Federal Trade Commission (FTC), accusing the company of preventing online merchants from selling their products on other platforms at a lower price, forcing them to use Amazon's warehouses and delivery systems. 
  • The lawsuit, which was joined by 17 state attorneys general, follows a four-year investigation. The FTC said:

"Left unchecked, Amazon will continue its illegal course of conduct to maintain its monopoly power."

Meta

  • In December 2020, the FTC sued Meta for creating a social media monopoly when it bought Instagram and WhatsApp, saying the merger deprived customers of alternative social media platforms. The judge claimed that the FTC failed to provide sufficient evidence that Meta had monopoly power, and Meta asked the judge to dismiss the case. There is a potential for the case to reopen.

Apple

  • In March, the DOJ sued Apple for using a monopoly to block competition in the smartphone market. The department accused Apple of halting companies from offering applications that competed with Apple products, such as cloud-based streaming apps, messaging, and digital wallets. 
  • Apple said it planned to dismiss the case, saying it will "vigorously defend" itself against the "threats."

 

Should Big Tech's power be reined in?

 

-Jamie Epstein

(Photo Credit: Flickr/Robert Scoble)