Explained: The Antitrust Case that could potentially break up Google

On August 5, a US judge ruled that the big tech firm Google has violated antitrust law to become world’s default search engine. The company has been accused of spending billions of dollars to secure a monopolistic position in the search market. The ruling might paveway for fixes; one of the options that is being considered is reportedly that of breaking up Google’s parent Alphabet.

What are the events that led to this landmark ruling and what is the way forward, TechCircle explains here.

Antitrust violation

Judge Amit Mehta, in delivering the judgment on the US vs Google case, stated, "The court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly.” The case's factual and legal findings were documented in a 286-page report. Last week’s ruling supported the Department of Justice and a coalition of states that had sued Google in 2020. The antitrust lawsuit, initiated by the Justice Department in 2020, was joined by 38 attorneys general, accusing Google of using illegal methods to promote its search engine.

The ruling highlighted that Google spent $26.3 billion in 2021 alone to ensure its search engine remained the default on smartphones and browsers. Additionally, Google has been paying $20 billion to Apple to maintain its status as the default search engine on iOS.

“Google, of course, recognizes that losing defaults would dramatically impact its bottom line. For instance, Google has projected that losing the Safari default would result in a significant drop in queries and billions of dollars in lost revenues,” Mehta observed.

More deliberations and a potential breakup next?

In the coming days, remedies for the case will be deliberated. In early September, both parties are required to submit a proposed schedule for remedy proceedings, with a status conference set for September 6.

Competitors and stakeholders have already proposed several options, either through discussions with the government or public statements, on how Google could be penalized. One of the more extreme suggestions, reported by *The New York Times*, is the potential breakup of a significant part of Google's business, such as Chrome or Android. According to *Bloomberg*, officials may also consider the possible sale of AdWords, the platform Google uses to sell text advertising. Another alternative could involve requiring Google to license its data to rivals like Microsoft Bing and DuckDuckGo.

In 2000, Microsoft faced a similar antitrust case, where judges initially ruled for the company to be split up. However, this decision was later reversed on appeal.

Google’s antitrust battles in India

Google is also facing significant challenges in India, where tensions with Indian startups have escalated over the fees the tech giant charges for in-app payments. The conflict intensified earlier this year when Google removed over 100 apps from its app store due to billing-related violations. These apps were later restored following intervention from the Indian government.

In March, India's antitrust body launched an investigation into the company’s alleged discriminatory policies, as claimed by the startups.

Additionally, in October 2022, the Competition Commission of India imposed a fine of ₹1,337.76 crore on Google for abusing its dominant position in the Android market. The fine was levied for compelling phone manufacturers to pre-install its search apps, widgets, and the Chrome browser alongside the Android OS.

The ongoing ruling in Google's case marks a pivotal moment in the global battle against Big Tech monopolies, with potential consequences that could reshape the digital landscape. As remedies are debated and the possibility of a breakup looms, this case could set a significant precedent for how governments regulate the power of tech giants in the future.