The U.S. Department of Justice stated on Tuesday (October 8th) that it may request a judge to order Google to divest certain businesses, such as the Chrome browser, the Android operating system, and the AdWords advertising platform. This is due to Google's use of these businesses to maintain its illegal monopoly in the online search field.

This proposal is based on a ruling made by a U.S. federal judge in a previous antitrust lawsuit between the U.S. federal government and Google. It is also the first time the U.S. government has considered breaking up a company for illegal monopolization since the failed attempt to break up Microsoft 24 years ago.

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In August of this year, a U.S. federal judge ruled that Google, which holds a 90% share of the U.S. internet search market, constitutes an illegal monopoly. The U.S. Department of Justice stated: "To fully correct these wrongs, it is not only necessary to end Google's control over search engines but also to ensure that Google cannot control future information searches."

Foreign media reports indicate that divesting any of the three aforementioned businesses could result in billions, or even tens of billions, of dollars in revenue losses for Google's parent company, Alphabet. This would also completely reshape the global technology industry order and provide greater room for competitors to grow.

On September 9, 2024, local time, the U.S. Department of Justice's case against Google for illegally monopolizing the digital advertising industry went to trial. The U.S. government accused the tech giant of dominating online advertising and stifling competition. The photo shows lawyers representing Google, Justina Sessions (left) and Eric Mahr (right), leaving the court in Alexandria, Virginia. Visual China Group photo.

The U.S. Department of Justice submitted a 32-page proposal.

A 32-page proposal submitted by the U.S. Department of Justice on October 8th shows that the agency is considering requiring Google to sell some of its businesses to mitigate the harm caused by monopolizing the online search market.

This move is the first time in 24 years that the U.S. government has considered breaking up a company for illegal monopolization. In 2000, the U.S. government attempted to break up Microsoft but was unsuccessful.

The latest proposal is based on a ruling made by a U.S. federal judge in a previous antitrust lawsuit between the U.S. federal government and Google.

On August 5th of this year, the U.S. District Court for the District of Columbia ruled that Google illegally monopolized the online search market, violating U.S. antitrust laws. Judge Amit Mehta stated that Google holds nearly 90% of the general search engine market share, and its market share on mobile devices such as smartphones reaches nearly 95%. Its dominant position in the search market is evidence of a monopoly.In the proposal, the U.S. Department of Justice stated, "We are considering taking action and structural remedies to prevent Google from using products such as Chrome browser, Play, and Android to give Google Search and products and features related to Google Search (including emerging search access points and features like AI) an advantage over competitors or new entrants."

The "remedies" currently under consideration by the authorities include: limiting Google's investment in competitors or potential competitors in the search engine market, requiring Google to allow websites to choose whether to use its AI products, and demanding that Google provide more information to advertisers and control the placement of advertisements.

Foreign media reports indicate that some legal experts believe the most likely outcome is that the authorities may require Google to rescind certain exclusivity agreements with Apple.

Google pays $26.3 billion annually to other device manufacturers, including Apple, to ensure that its search engine is the default option on these smartphones and various browsers, in order to maintain its超高市场份额.

After the U.S. Department of Justice made the aforementioned proposals public, Google stated in an official blog post that these proposals are "radical" and that the proposed measures "go far beyond the specific legal issues involved in this case." Google insists that its search engine has won user trust through quality and adds that it faces fierce competition from Amazon and other websites, and users can also choose other search engines as the default setting.

Regarding the AI-related proposals put forward by the U.S. Department of Justice, Google claims that they could stifle innovation in the industry, "The U.S. government's focus on this important industry carries significant risks, including hindering investment, incentives, and emerging business models, at a time when we need to encourage investment."

The impact of a breakup would be extensive.

As the world's fourth-largest company with a market value of over $2 trillion, Google's parent company, Alphabet, is facing increasing legal pressure from competitors and antitrust agencies. However, Google has indicated that it plans to appeal Judge Amit Mehta's decision.

Cornell University law professor Erik Hovenkamp previously analyzed, saying, "From a practical standpoint, a breakup is very difficult... Judges view a breakup as an extreme remedy that could have unpredictable consequences. For example, the new company created after a breakup might be eliminated from the market."

But if Google were to be broken up, including the divestment of its Android operating system, Chrome browser, or AdWords platform, it would reshape the order of the global technology industry. Foreign media reports indicate that divesting any of the above three businesses could cost Alphabet billions, even tens of billions, of dollars in revenue and cut off the vast data that powers its broader search and advertising ecosystem.If the Android system were to be separated from Google, it could impact approximately 2.5 billion devices worldwide that use the Android operating system. Moreover, developers globally rely on Google to maintain the cross-platform capabilities of the Android system.

For instance, the world's largest interactive fitness platform, Peloton, utilizes the Android open-source system to power its fitness equipment. Aircraft manufacturers also employ the Android system to drive video screens, and major supermarkets use the Android system to operate their kiosks.

The separation of the AdWords platform, which is responsible for Google's advertising business, would also deal a heavy blow to Google's revenue. Judge Meta's ruling indicates that Google has a monopoly on advertisements that appear at the top of search result pages, known as "search text ads," which are designed to entice users to visit websites. These ads are sold through Google's advertising sales, and Google Ads, which was renamed from AdWords in 2018, provides marketers with a way to target ads based on certain search keywords related to their businesses. Testimony from the trial revealed that about two-thirds of Google's total revenue comes from search ads, surpassing $100 billion by 2020.

NPR reported that Google controls about 90% of the U.S. search engine market share, while its closest competitors, Bing and Yahoo, hold only about 3% of the market share. Google's financial reports show that in the second quarter of this year, the revenue from "Google Search and Other" business reached $48.5 billion, accounting for 57% of Alphabet's total revenue.