The U.S. Justice Department has argued in an antitrust lawsuit against Google that the best way to resolve its internet search monopoly is to break up the $1.81 trillion company, kicking off a three-week hearing that could ultimately reshape the tech giant and significantly alter the balance of power in Silicon Valley.
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U.S. District Court Judge Amit P. Mehta ruled last August that Google violated antitrust laws to maintain its dominant position in online search. Now he will hear arguments from the Justice Department and Google on how they think it should fix the situation. He is expected to issue an order by the end of the summer for certain actions, called “remedies.”
In his opening argument, a Justice Department official said Mehta should force Google to sell its Chrome browser, one of the tools that helps drive users to the company’s search engine. Government lawyers also said the company must take steps to give competitors an advantage if the court is to restore competition in the online search market.
«”Your Honor, we are not here to achieve a Pyrrhic victory. This is the time for the court to tell Google and every other monopoly that is listening, and they are listening, that there are consequences for violating the antitrust laws,” Justice Department attorney David Dahlquist said during the argument.
The outcome of this case could be a game-changer for Silicon Valley. Google continues to face new challenges, including the potential collapse of its online advertising business, after another federal judge ruled last week that the company has a monopoly in the ad business. Google also lost a 2023 case against Fortnite developer Epic Games Store, which accused the tech giant of violating antitrust laws by dictating unfavorable terms for developers on its Play Store app store.
The legal challenges could hurt Google’s bid to compete with OpenAI, Microsoft, and Meta✴ Platforms in artificial intelligence. The company has increasingly integrated AI technology into its search engine, but the Justice Department has already asked a judge in an ongoing case to ensure that Google can’t use its monopoly on internet search to dominate AI.
The Justice Department’s move signals that President Donald Trump’s administration intends to continue to control the tech industry. Apple, Meta✴ and Amazon also face antitrust lawsuits from the government, with Meta✴ in the second week of a trial to determine whether its acquisition of Instagram✴ and WhatsApp stifled competition.
The case over Google’s monopoly in online search was brought in 2020, during Trump’s first term. In 2023, Judge Mehta presided over an eight-week trial in which the government tried to prove that Google had engaged in anticompetitive conduct. Ultimately, the judge sided with the government, setting in motion a new trial that will determine how competition issues in online search will be resolved.
Google is seeking minor changes, including renegotiating deals in which it pays smartphone and other gadget makers to make Google the default search engine on their devices. The Justice Department is seeking tougher measures, including a ban on deals with device makers and browser makers that make Google the default search engine. The government is also asking the judge to reserve the option to force Google to sell its Android mobile operating system in the future if competition continues to falter.