The Department of Justice of USA anticipated on Tuesday 8 that it would require the Google profound changes to its business model and could even consider a division, after the technology giant was judged responsiblein early August, for operating an illegal monopoly.
In a 30-page document sent to Washington federal judge Amit Mehta, the DoJ mentions possible “structural” changes, which several analysts interpret as divisive.
The American government suggests preventing the technology giant from using its browser, Chrome, its application store, Google Play Store, and its operating system for Android mobile platforms to give its search engine an advantage.
Mehta was the one who declared Google guilty of anti-competitive practices, in a trial that showed how the search engine received large sums for exclusivity from smartphone manufacturers and the Internet browsers that incorporated it.
According to the website StatCounterin September, Google represented 90% of the global search market online and up to 94% of smartphones.
The document published Tuesday is a draft of the recommendations the DoJ will send to the judge in November.
But this first version already requests substantial changes, such as access to the algorithm that produces results in the Google search engine.
It also asks for the possibility of preventing the company from using Chrome, Google Play Store and Android to privilege its search engine, a limitation that could imply “structural” changes that would point to a division.
“Dividing Chrome and Android would destroy them, (as well as) many other things”, reacted Google in a press release.
For the company, a forced separation like this “would change its business model, increase the cost of devices and harm Android and Google Play in their competition with the iPhone and the App Store”, Apple’s application store.
The Justice Department also plans to ask the judge to prohibit Google from using or keeping data that it refuses to share with other companies.
Regarding a possible exchange of data with other Internet actors, the Californian company argues that this “would represent a risk to the protection of (personal) data and its security”, referring to users.
For Google, the US government’s recommendations “go far beyond the specific legal issues of this case”.
After a more detailed request for reparations from the DoJ is presented in November, a special hearing will be scheduled for April, at which arguments from both sides will be heard.
Strong change of approach
The possibility of breaking up Google or demanding profound changes to its business model marks a major shift by US competition authorities, who have left the tech giants alone since their failure to dismantle Microsoft 20 years ago.
Google faces a major legal offensive for alleged violation of competition laws.
On Monday, a federal judge in California ordered the company authorize the installation of other competing app stores on its Google Play Store, a win for video game creator Epic Games.
The game developer plans to launch its own app store in 2025, “without Google’s scary messages and its 30% commissions”, a percentage charged by the giant on app creators’ revenue.
Whatever the judge’s final decision, Google should appeal, which could prolong the process for years and even take it to the United States Supreme Court.
