U.S. DOJ considers seeking Google breakup for abusing its monopolies in online search, ads
The U.S. Justice Department is exploring the possibility of breaking up Google following a court ruling that found the company monopolized online search. This would mark a significant antitrust action, similar to the unsuccessful attempt to dismantle Microsoft decades ago.
Leah Nylen and Anna Edgerton for Bloomberg News:
Less severe options include forcing Google to share more data with competitors and measures to prevent it from gaining an unfair advantage in AI products, said the people, who asked not to be identified discussing private conversations.
Regardless, the government will likely seek a ban on the type of exclusive contracts that were at the center of its case against Google. If the Justice Department pushes ahead with a breakup plan, the most likely units for divestment are the Android operating system and Google’s web browser Chrome, said the people. Officials are also looking at trying to force a possible sale of AdWords, the platform the company uses to sell text advertising, one of the people said.
The Justice Department discussions have intensified in the wake of Judge Amit Mehta’s Aug. 5 ruling that Google illegally monopolized the markets of online search and search text ads. Google has said it will appeal that decision, but Mehta has ordered both sides to begin plans for the second phase of the case, which will involve the government’s proposals for restoring competition, including a possible breakup request.
MacDailyNews Take: As we wrote in January 2023:
As regular readers know, we’ve been talking about this issue for years, as ad revenue dwindled – yet Alphabet/Google magically got richer. The “Apple Web” lost many great sites over recent years as the broken ad-supported model failed. This is the very reason why there are too many ads on the site (cluttered is better than dead).
Candidly, it may be too late for us (but, for now, we’re still trying to survive). This will take many years to be rectified and for the once-vibrant digital advertising model to begin working again for publishers, if it ever happens. If you can help keep our independent Apple-focused blog afloat, you can do so here. Thank you in advance!
[You can also support us via our Substack site: https://macdailynews.substack.com]
Even as we attempt to move away from the ad-supported model, we back whatever remedy or remedies will introduce competition back into the online advertising business, which is broken, in part, because far too much power is concentrated with Google/Facebook. This situation is exactly why antitrust laws exist. — MacDailyNews, February 2, 2021
Imagine if your livelihood depended on one company that had not only monopolized web search (and, thereby, basically controlled how new customers find you), but also controlled the bulk of online advertising dollars which funded your business and which they could pull, simply threaten to pull, or reduce rates at any time? Now also imagine if you believe this monopolist basically stole the product of another company that is the very subject of your business? How much would you criticize the monopolist thief’s business practices?
You might guess that it would be a tough road to walk. (We’re only imagining, of course!)
That would be a good example of why monopolies are bad for everyone…
In the meantime, stop using Google search and Google products wherever possible. Monopolies are bad for everyone. — MacDailyNews, July 14, 2016
If you haven’t already, give DuckDuckGo a try! https://duckduckgo.com
With this unprecedented power, platforms have the ability to redirect into their pockets the advertising dollars that once went to newspapers and magazines. No one company should have the power to pick and choose which content reaches consumers and which doesn’t. — MacDailyNews, November 9, 2017
We’d like to see real competition in the online search and advertising markets restored someday. — MacDailyNews, March 20, 2019
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