U.S. Considers Breaking Up Google to Address Search Monopoly
The U.S. Justice Department is exploring remedies for Google's search monopoly after a court ruling found illegal practices. Potential actions include breakups and data accessibility, with implications for other tech giants.
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The U.S. Justice Department and state attorneys general are exploring various remedies to address Google's monopoly in online search, following a recent court ruling that found the company had acted illegally to maintain its dominance. Discussions include potential breakups of parts of Google, such as its Chrome browser or Android operating system, as well as measures to make its data accessible to competitors and to eliminate exclusive agreements that position Google as the default search engine on devices like iPhones. Judge Amit P. Mehta has requested a process for determining a remedy by September 4, with a hearing scheduled for September 6. The ruling against Google is seen as a significant moment in antitrust law, raising questions about the power of major tech companies. The implications of any remedies could extend beyond Google, affecting other tech giants like Apple and Amazon, which are also facing antitrust scrutiny. Google, which generated $175 billion in revenue from its search services last year, plans to appeal the ruling. The discussions are still in early stages, and the Justice Department has not yet made any decisions regarding the proposed remedies.
- The U.S. is considering breaking up Google to address its search monopoly.
- A federal judge ruled that Google illegally maintained its dominance in online search.
- Potential remedies include divesting parts of Google and making data available to competitors.
- The outcome could influence other ongoing antitrust cases against major tech companies.
- Google plans to appeal the ruling while discussions on remedies are ongoing.
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1 commentsGoogle could partition. It could become a federated distributed enterprise with substantive incorporated elements under distinct boards, and it would actually cement in some of the transfer pricing profit / tax models.
Distinct legal entities can cooperate. It happens all the time, we usually call it buying and selling but there are other names. Look at how the auto industry shares IPR. Or how naval shipbuilding works with (sub)contracts and joint ventures.
Making Google in the EU and UK and US distinct would solve many legal and jurisdictional problems. Sure, it might be less efficient and profitable.
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