US ramps up pressure on Google with potential breakup in landmark antitrust case

The U.S. Department of Justice (DOJ) is intensifying efforts to challenge Google’s search monopoly, proposing radical remedies that could reshape the tech giant’s business and disrupt its dominance in both search and artificial intelligence.

Analysts warn that these measures, including breaking up key assets like Chrome and Android, could significantly weaken Google’s core revenue streams and hinder its progress in AI technologies.

The DOJ's proposals come on the heels of a ruling in August, which found that Google had maintained an illegal monopoly in online search through self-reinforcing tactics. Prosecutors are now pushing for drastic measures to rectify these antitrust violations.

Among the remedies under consideration are barring Google from collecting sensitive user data, making its search index accessible to rivals, and preventing its products from advantaging its search engine.

The proposed actions, which could include divesting major assets, strike at the heart of Google’s business model. Analysts like Gil Luria from D.A. Davidson argue that such remedies would force Google to either stop collecting user data or share it with competitors.

This move could potentially level the playing field for smaller search engines like DuckDuckGo and Microsoft’s Bing, giving them room to grow.

With Google already facing stiff competition from AI-driven companies like OpenAI, the potential regulatory burden could further complicate its position.

According to Bernstein analyst Mark Shmulik, the tech giant’s dominance in AI could be hampered by these proposed remedies, particularly as it battles emerging rivals in the AI-powered search space.

The DOJ is expected to submit more detailed proposals by 20 November, followed by Google’s counterarguments a month later.

The timeline for any concrete actions remains uncertain, but experts believe this legal fight could extend for years, potentially setting a precedent for other tech giants facing antitrust scrutiny in the U.S.

Despite these threats, investors remain skeptical about a forced breakup, as seen in the modest reaction to Alphabet’s stock, which dipped by just 2.8%.

However, Google has strongly pushed back, with its vice president of regulatory affairs, Lee-Anne Mulholland, describing the DOJ's proposals as "overreach" and warning that these changes could drive up consumer prices.

(Sources: AFP, Reuters, BBC News, The Guardian)