Google will have to break up its business as the U.S. Department of Justice (DOJ) has recently reaffirmed its demand to do so following a federal court ruling last year that found the company had unlawfully maintained a monopoly in online search.
The DOJ’s latest filing emphasizes the need for Google to sell its Chrome browser, arguing that this divestiture would reduce Google’s dominance and allow competing search engines better access to users through the browser, which serves as a key gateway to the internet.
Key points from the DOJ’s proposal include
- The DOJ insists that Google must “swiftly and completely” sell Chrome, including all related assets, to a buyer approved by the DOJ and the court. This measure is intended to allow rival search engines access to a major entry point for internet searches, free from Google’s control.
- The DOJ seeks to prohibit Google from paying companies like Apple and Mozilla to make Google Search the default on their devices and browsers. This practice was deemed central to Google’s monopoly.
- The DOJ also proposed reforms to Google’s Android operating system to ensure fairer competition in mobile search.
- Unlike earlier proposals, the DOJ no longer seeks mandatory divestiture of Google’s AI investments, citing dependencies of companies like Anthropic on Google’s funding.
Google has opposed these measures, arguing they go beyond the court’s ruling and could harm consumers and the economy.
The company has proposed alternative remedies, such as restructuring its contracts with device manufacturers and allowing more flexibility for competitors in default search engine agreements.
The court is scheduled to hear arguments on these remedies in April 2025, marking a critical moment in one of the most significant antitrust cases since the Microsoft breakup attempt in 2000.
Google was founded on September 4, 1998, by American computer scientists Larry Page and Sergey Brin while they were PhD students at Stanford University in California.
Together, they own about 14% of its publicly listed shares and control 56% of its stockholder voting power through super-voting stock.
The company went public via an initial public offering (IPO) in 2004.
In 2015, Google was reorganized as a wholly owned subsidiary of Alphabet Inc. Google is Alphabet’s largest subsidiary and is a holding company for Alphabet’s internet properties and interests.
Sundar Pichai was appointed CEO of Google on October 24, 2015, replacing Larry Page, who became the CEO of Alphabet.
On December 3, 2019, Pichai also became the CEO of Alphabet.
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