Antitrust Case: The DOJ Formally Submits Recommendations That ...
The antitrust noose appears to be tightening around Google with each passing day. Consider the latest remedial recommendations from the US Department of Justice (DOJ) in an ongoing high-stakes trial, where the judge's acquiescence to the suggested plan of action might see the iconic company rend asundered and its search engine business spun off as a separate entity.
Background
For the benefit of those who might not be aware, back in August, the United States District Court of Columbia had ruled that Google held a monopoly in the search engine market, replete with formidable barriers to entry. The judge had honed in on Google's search exclusivity arrangements on Apple's iPhones and iPads, not to mention the myriad of Android devices, to conclude that such arrangements only served to cement the company's seemingly insurmountable lead in the search engine market.
The court also found that Google's monopolistic behavior was evident in the general search text advertising arena, where textual ads are displayed alongside search results. However, any punitive observation here was mitigated by the fact that, as per the court's understanding, general search advertising does not constitute a proper market, and so Google can't be accused of cornering a market which does not exist.
DOJ Recommendations
This brings us to the crux of the matter. After delivering his ruling, Judge Amit P. Mehta had asked the DOJ to submit specific remedial recommendations to address Google's monopolistic behavior. The DOJ has now formally submitted its recommendations, which include the dreaded "structural requirements" that will result in Google's break up:
"For each area, the remedies necessary to prevent and restrain monopoly maintenance could include contract requirements and prohibitions; non-discrimination product requirements; data and interoperability requirements; and structural requirements."
Of course, the DOJ will further refine this proposal in November 2024 and submit a final proposal in March 2025. Google will, no doubt, appeal any adverse outcomes. This means that the actual dissolution of Google, if authorized by the judge, might yet take a number of years.
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