Sunday, October 13, 2024
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The U.S. Department of Justice (DOJ) is contemplating significant actions against Alphabet’s Google, including the potential breakup of the tech giant, following a recent judicial ruling that deemed Google’s practices as illegal monopolization of the online search market. According to Bloomberg News, this development comes in the wake of a landmark court decision that found Google guilty of antitrust violations.

On Wednesday, Google’s shares fell approximately 3% to 1401 GMT, reflecting investor concern following the Bloomberg report, which was published late on Tuesday. The decline in the company’s stock value underscores the gravity of the situation and the market’s reaction to the potential legal consequences.

A spokesperson for the DOJ indicated that the department is currently reviewing the court’s decision and is evaluating the most appropriate next steps in alignment with the court’s findings and existing legal frameworks for antitrust remedies. The spokesperson emphasized that no final decisions have been made regarding the specific actions to be taken against Google.

In the recent verdict, the court concluded that Google had breached antitrust laws by investing billions of dollars to establish and maintain an illegal monopoly in the online search industry, effectively making itself the default search engine globally. This ruling represents a significant legal victory for federal authorities in their ongoing efforts to challenge the market dominance of major tech firms.

Bloomberg’s report outlines several options under consideration by the DOJ. These include the possibility of breaking up Google, which might involve the divestiture of key components of the company such as its Android operating system, the AdWords search advertising program, and its Chrome web browser. The report suggests that forcing Google to share data with competitors and implementing measures to prevent unfair advantages in artificial intelligence products are also among the remedies being discussed.

The potential breakup of Google is a measure that has been frequently mentioned in discussions among DOJ attorneys. Such a move would be one of the most drastic steps taken against a major technology company in recent history.

Over the past four years, federal antitrust regulators have initiated lawsuits against other tech giants, including Meta Platforms, Amazon.com, and Apple, alleging that these companies have engaged in monopolistic practices. In a notable precedent, Microsoft settled with the DOJ in 2004 over similar claims, which accused the company of leveraging its dominance by bundling its Internet Explorer browser with the Windows operating system.

As the DOJ continues to explore its options, the tech industry and investors are closely watching to see how these potential actions might reshape the landscape of online services and competition. The outcome of this review could have profound implications for Google and the broader technology sector.

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