The US Department of Justice has taken its next step in its offensive against Google, by filing paperwork in court that sets out its plans to break up the web search giant’s monopoly.
After parent company Alphabet was judged to have an illegal monopoly in a landmark ruling last month, the DoJ has now described the remedies that it is seeking. These include actions relating to Google’s search distribution, accumulation of data, ad monetization and display of search results.
Google has confirmed that it will argue against the proposed plans in court, calling them ‘radical’ and saying that they “go far beyond the specific legal issues in this case”.
Proposed Remedy Framework
The paperwork filed with the DC District Court on behalf of representatives of the Department of Justice summarizes the “pernicious” anticompetitive conduct of which Google has been found in violation, citing the ways it has illegally maintained monopolies.
It then goes on to set out its desired remedies in four categories that it says “appropriately and meaningfully addresses the harms resulting from Google’s unlawful conduct in the context of current market realities”:
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- Search distribution and revenue sharing Limiting, for example, Google’s use of preinstallation agreements that mean its browsers and first party apps monopolize new devices.
- Generation and display of search results Prohibiting Google from leveraging its power to unfairly feed its own artificial intelligence tools by allowing websites to opt out of its ‘AI training’.
- Advertising scale and monetization Preventing Google from using AI to upscale its already dominant position on search text advertising.
- Accumulation and use of data Requiring Google to share with competitors (or stop retaining) user data it has obtained through unlawful means.
“Google is a Monopolist”
The District Court’s decision last month ruled that Google is a monopolist that has abused its monopoly to impede fair competition rules.
It was a decision welcomed by the US Attorney General, Merrick Garland, who said that the victory was a historic one for the American people and that “no company – no matter how large or influential – is above the law”.
Google vowed to appeal the decision, with the process not expected to be resolved with any speed. The remedies framework is the government’s next step on that path.
“An effective remedy requires administration as well as protections against circumvention and retaliation,” the DoJ said in its latest application, “including through novel paths to preserving dominance in the monopolized markets.”
How Will Google Whack Back?
Unsurprisingly, Google has vowed to contest the proposed remedies. In a blog post, its vice president of regulatory affairs, Lee-Anne Mulholland, said that the company will respond in detail and ultimately make its case in court next year.
“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.” – Lee-Anne Mulholland, Google
She set out several areas in which Google is likely to plead its case, including the risks to privacy and security of users, harm to businesses and advertisers, the inevitable rise in costs of devices using Google software, and the general shackles it would have on American tech sector innovation.
“We believe that today’s blueprint goes well beyond the legal scope of the Court’s decision about Search distribution contracts,” she said, adding that the government had overreached its role in this case.
