A U.S. judge has made a potentially groundbreaking ruling that Google is unlawfully monopolizing online search and related advertising. While Google-owner Alphabet is expected to appeal, and the legal battle could drag on, the implications of this decision are already being discussed. These could range from hefty fines to more complex solutions, such as breaking up the company.
Breaking Up Google
One drastic possibility is that Google might be required to split into smaller entities, something U.S. officials haven’t ruled out. Google’s empire extends beyond search, with Android and YouTube being key assets. The government might argue that these could remain under Alphabet’s control, while the search engine itself should be separated into an independent business. Although this would likely cause concern for Alphabet executives, most users might not notice any immediate changes as long as Google continues to be the default search engine on devices.
Gareth Mills, a Partner at Charles Russell Speechlys, notes that such a move would lead to prolonged legal battles. However, the likelihood of considering such drastic measures is higher now than ever before. The judge in the case will eventually have to weigh options like breaking up Google’s search engine division or imposing new corporate governance measures to curb anti-competitive practices.
Google’s Payments to Stay Default
Another issue under scrutiny is Google’s practice of paying other companies to ensure it remains the default search engine on their platforms. The judge agreed with the U.S. government’s argument that these payments, such as those made to Apple, hinder competition by discouraging companies from developing their search tools. If these payments were restricted, it might open the door for competitors, though challenging Google’s strong brand recognition would be difficult.
For Apple, which reportedly received $20 billion from Google in 2022, any disruption to this revenue stream could have significant effects. As the case proceeds, it’s likely Apple has contingency plans to maintain a seamless user experience should the exclusivity of Google’s search engine be challenged.
Shifting User Preferences
One potential, less drastic remedy could involve introducing a “choice screen,” where users are prompted to select their preferred search engine when they open a browser for the first time. However, it’s unlikely this would lead to a mass exodus from Google, given the search engine’s effectiveness and deep integration into daily life.
Despite competition from Microsoft’s Bing, which launched in 2009, Google has remained the dominant search engine, becoming synonymous with internet searches. Microsoft’s CEO, Satya Nadella, testified in the trial, perhaps hoping that the ruling might give Bing a chance to grow. However, as Professor Anu Bradford from Columbia Law School notes, while the court might consider other ways to reduce Google’s dominance, such as those being implemented in the EU’s Digital Markets Act, these measures could extend beyond the current case.
Overall, the ruling could signal significant changes for the search engine landscape, though the specifics remain uncertain as the legal process continues.
source: bbc
