The U.S. Department of Justice (DOJ) is considering the unprecedented step of dismantling Alphabet’s Google following a landmark court ruling that found the tech giant guilty of monopolizing the online search market (via Bloomberg).
This move, if pursued, would mark the first attempt by Washington to break up a major corporation for illegal monopolization since the failed effort to split Microsoft in the early 2000s.
Sources familiar with the DOJ’s deliberations indicate that breaking up Google is one of several options on the table. Among the possible actions is the divestment of key business units, including the Android operating system and Google’s Chrome web browser.
Another potential target for divestment is AdWords, Google’s powerful platform for selling text-based advertising, which plays a significant role in the company’s revenue stream.
While a breakup is the most severe option being considered, the Justice Department is also weighing less drastic measures. These include forcing Google to share more of its valuable data with competitors and imposing restrictions to prevent the company from gaining an unfair edge in the rapidly evolving field of artificial intelligence (AI).
The DOJ’s intensified discussions follow a critical ruling by U.S. District Judge Amit Mehta on August 5th. The judge determined that Google had indeed engaged in illegal monopolization of the online search and search text advertising markets.
Although Google plans to appeal the decision, Judge Mehta has instructed both parties to begin preparing for the next phase of the case.
The potential breakup of Google would be the largest dismantling of a U.S. company since the breakup of AT&T in the 1980s, a move that led to the creation of several smaller telecommunications companies.
In response to the news, Alphabet’s shares dipped 1.4%, falling to $161.95 in premarket trading on Wednesday. Both Google and the DOJ have declined to comment on the potential breakup and other proposed remedies.
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Hrmmmm, maybe trillion dollar companies should be broken up. The question is, who do you assign to lead the newly formed companies out of the fragments?
These "companies" influence politicians and government. So no, they won't be broken up. It's just optics to give the illusion government cares.
Not going to happen. It's toxic optimism believing it could.