The US Government’s Push to Break Up Google
The US Department of Justice (DOJ) is considering a rare antitrust action: breaking up tech giant Google. This consideration comes in the wake of a landmark court ruling that found the company had monopolised the online search market.
As reported by Bloomberg, DOJ officials have intensified discussions about potential remedies following Judge Amit Mehta’s August 5 decision, which ruled that Google illegally monopolised the markets of online search and search text ads. The ruling marks a significant victory for the government in its efforts to curb the power of big tech companies.
Google’s Dominance in the Tech Ecosystem
Google’s dominance in the tech ecosystem is no secret. The company’s Android operating system powers approximately 2.5 billion devices worldwide, while its Chrome web browser is the most widely used browser globally. The company’s AdWords platform, which was rebranded as Google Ads in 2018, is a crucial revenue source for the company, generating about two-thirds of Google’s total revenue – amounting to more than $100 billion in 2020, according to testimony from last year’s trial.
The DOJ is exploring several options to address Google’s dominance. One possibility is to force Google to divest key parts of its business, including its Android and Chrome businesses. Another option is to require Google to share more data with competitors.
The Impact of a Break-Up
If the DOJ pursues a breakup, it would mark the most significant antitrust action against a US company since the dismantling of AT&T in the 1980s. The move would need to be approved by Judge Mehta, who would then direct Google to comply.
The impact of a breakup on Google’s business would be significant. The company would likely need to restructure its operations and divest key assets, which could lead to a loss of revenue and market share. However, the move could also create new opportunities for competitors and lead to increased innovation in the tech industry.
Google’s Response
Google has announced its intention to appeal Judge Mehta’s ruling. The company maintains that its success is due to providing a superior product that users choose for its quality. Kent Walker, Google’s president of global affairs, stated that the decision “recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”
Google’s New Satellite SOS Feature
In other news, Google has introduced a new feature called Satellite SOS, which allows users to contact emergency services when they are out of range of mobile networks and Wi-Fi. The feature is only available on the Pixel 9 series of phones and the Pixel 9 Pro Fold, and only in the continental US.
The Satellite SOS feature works similarly to Apple’s Emergency SOS, allowing users to fill out a questionnaire describing their emergency and get connected with an emergency service provider for back-and-forth text exchanges. Users can also optionally notify their emergency contacts.
The introduction of Satellite SOS has reignited competition with Apple’s Emergency SOS, though for only a few phones at first. It remains to be seen how much longer iPhone owners will hold the edge in mainstream satellite connectivity.