The U.S. Federal Trade Commission (FTC) is currently considering the possibility of breaking up Google LLC, one of the tech industry’s biggest players. This decision comes after the FTC intervened in the Epic Games Inc. v. Google case, where Epic Games accused Google of holding an illegal monopoly with its Play store. Despite losing a similar case against Apple Inc., Epic Games emerged victorious in the federal court against Google in December.
The court case in December was appealed by Google to the Supreme Court, prompting the FTC to enter the fray with an amicus brief. While some may view the idea of breaking up Google as unlikely, the FTC’s own media release hints at this possibility. The FTC stated that the court should order a remedy that stops illegal conduct, prevents its recurrence, and restores competition. This includes restoring lost competition in a forward-looking manner and ensuring that a monopolist does not continue to benefit from antitrust violations.
Although the FTC does not explicitly state that Google should be broken up, the language used in their release suggests that this option is on the table. The FTC also emphasizes the importance of considering network effects, data feedback loops, and other key features of digital markets to level the playing field for potential competitors.
The FTC further asserts that Google’s monopolistic behavior has harmed millions of users in the United States. Allowing monopolists to profit from illegal monopolization without restoring competition would undermine deterrence. This strong language indicates that the FTC is serious about addressing Google’s alleged anticompetitive practices.
According to Bloomberg, potential alternatives to breaking up Google include requiring the company to share more data with competitors and implementing measures to prevent unfair advantages in AI products. However, if a breakup were to occur, Google may be forced to divest its Android operating system and Chrome web browser.
The possibility of Google being broken up is a significant development in the ongoing debate over antitrust issues in the tech industry. The outcome of this case could have far-reaching implications for competition and innovation in the digital marketplace. As the FTC continues to investigate Google’s practices, the tech industry and consumers alike will be closely watching to see how this situation unfolds.